British entertainment chain HMV has become profitable again, within 2 years after it was declared bankrupt. Hilco, a company that also looked at Free Record Shop, helped its restart.
Every store is profitable
When it went bankrupt in January 2013, it had 170 million pounds (218 million euro) in debt, which put the 223 stores on the brink of closure and that would have cost 4,000 employees their job. Hilco assisted in the restart and helped save 140 stores.
In the period from 29 January 2013 to 28 December 2013, HMV managed a 311.2 million pound (398.6 million euro) turnover and a 16.7 million pound (21.4 million euro) company profit. Hilco has said that every HMV store is currently profitable thanks to a thorough restructuring. Rental prices and supplier conditions have been altered, which have helped lower costs.
Deal with record labels
To lure more people into its stores, HMV has signed deals with large record labels and film studios. Performances, among others, have helped promote artists and movies.
When entertainment chain Free Record Shop went bankrupt in Belgium and the Netherlands, Hilco was (fleetingly) interested to buy (a part) its stores. The deal fell through in the end, while Hilco wanted to use its HMV contacts to get Free Record Shop back on track.