HMV Canada sold to pay debts

Popular retailer HMV, more specifically, HMV Canada, has been sold. The Canadian installment of the company generated £222 million (about $354 million) with an operating profit of £2.3 million (roughly $3.67 million USD) in the year ending April 24th, 2010. But, there was evidently more to it than met the eye as the fact of the matter was to ultimately sell HMV Canada and cash in the dough to pay off some debts.

“The Board has fully explored the options available to it for HMV Canada, and believes that a sale to Hilco is the correct decision for the business at this time, whilst reducing the operating leverage in the continuing Group,” explained chief executive Simon Fox.

HMV Canada constituted of 121 stores across the area affected.