HMV raises £2 million with Canadian sale
Cash sale will go towards paying off debts, says entertainment chain
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Entertainment retailer HMV has sold its Canadian business to Hilco UK for £2 million in cash.
For the year ended April 24, 2010, HMV Canada generated sales of £222 million and an operating profit of £2.3 million. HMV said it will use the proceeds of the sale to pay off debt.
"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," commented Simon Fox, chief executive.
As well as a local website, HMV Canada consists of 121 stores across the region.