HMV sells Canadian arm for £2 million
HMV, which has issued four profit warnings this year, said that the company would retain part of the intercompany debt owed to it by HMV Canada and also provide a licence to the business to use certain intellectual property rights and domain names following completion of the sale.
For the year ended 24 April 2010, HMV Canada generated sales of £222 million, with an operating profit of £2.3 million and gross assets of £47.3 million.
The move follows the sale of HMV’s Waterstones book shop chain last month to Russian billionaire Alexander Mamut £53 million.
Chief executive Simon Fox said: "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."
He added: "The group is focusing on clear and tightly defined plans for transforming HMV into a broad-based entertainment business."
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