Hilco Newsletter for Q1 Out Now
May 3rd, 2013
The Hilco UK Newsletter for the first quarter of 2013 is out now. Click here to find out what’s been keeping us busy so far this year.
News
Hilco completes acquisition of HMV
April 5th, 2013
Hilco has today completed the acquisition of the business and certain assets of HMV, the iconic entertainment retailer, from its Administrators, Deloitte.
The business includes 141 stores, 25 of which had previously been slated for closure by the Administrators, and approximately 2,500 employees. All nine Fopp stores are also included in the purchase.
Paul McGowan, CEO of Hilco, said: “We have spent a number of weeks negotiating revised terms with landlords and the key suppliers to the business, all of whom have been supportive of our plans to maintain an entertainment retailer on the High Street.”
“We hope to replicate some of the success we have had in the Canadian market with the HMV Canada business which we acquired almost two years ago and which is now trading strongly. The structural differences in the markets and the higher level of competition in the UK will prove additional challenges for the UK business but we believe it has a successful future ahead of it.”
The HMV UK business will initially be led by a Hilco team working alongside existing management. The Hilco team will be led by Ian Topping, formerly Chief Executive of the Steinhoff Group in the UK, and Henry Foster, an Investment Director at Hilco while Paul McGowan will take up the role of Chairman of the new business.
Ian Topping commented: “This is an exciting investment for the Hilco team and we will be able to use some of the developments already progressed in Canada to restore HMV to health. We intend to reverse the earlier decisions to sell tablets and other devices in the stores and to reclaim the space for an enhanced music and visual range.”
“The reaction of the British public to the administration of HMV shows a strong desire for the business to continue to trade and we hope to play a constructive part in delivering that.”
Hilco has also confirmed that it is in negotiations with a number of landlords with a view to re-establishing an HMV business in the Republic of Ireland after Receivers there closed the business shortly after their appointment.
Hilco UK acquires HMV’s debt
January 22nd, 2013
Hilco UK confirms that it has acquired HMV’s debt from the Group’s lenders. It has not bought the business itself.
Hilco believes there to be a viable underlying HMV business and will now be working closely with Deloitte who, as Administrators, are reviewing the business to determine future options.
Q4 2012 Newsletter
January 18th, 2013
The Hilco UK Newsletter for the fourth quarter of 2012 is hot off the press. Click here to read it now.
hmv Canada Boasts Outstanding Sales Results for its 2012 Holiday Trading Season
January 8th, 2013
With same stores sales up 1.4% over the 2011 holiday season, hmv Canada surpasses 2012 CAD $65 million holiday sales forecast and delivers full-year sales of more than CAD $270 million.
As Canadians close the books on a season of festive celebrations with family and friends, hmv Canada, the country’s premiere retail destination for music and entertainment, celebrated today a successful holiday campaign with sales surpassing $65 million over the festive period, ensuring that hmv Canada achieved more than $270 million in sales for 2012.
“Our primary focus this holiday season was on delivering music and entertainment products in the formats that were best suited to our customers’ needs, ensuring that we gave them what they wanted,” said Nick Williams, President and CEO, hmv Canada. “This meant creating an in-store offering to fulfill the strong demand for physical music and entertainment products, giving Canadians unparalleled access to music in the online space and offering our newer categories of Gift and Collectibles, Merchandise and Headphones.”
As core CD and DVD sales remained broadly in line with 2012 forecasts, new and emerging categories such as Gift and Collectibles achieved a growth of 49%. Within this segment, T-shirts and seasonal merchandise achieved a growth of 29% and 33%, respectively. Headphones were also a key holiday gifting item with more than 50,000 units sold delivering $1.6 million in sales. Additionally, any Christmas gift featuring One Direction turned to gold, with more than 71,000 units sold, while Star Wars, Dr. Who and The Beatles -themed Christmas lights were also popular pick-ups among consumers. Finally, apparel from The Big Bang Theory and Sons of Anarchy quickly became hot holiday favourites.
New releases from Bruno Mars and Rihanna combined with top sellers such as Michael Buble’s Christmas, Pink, and Mumford & Sons to collectively gross a total of $1 million in sales from more than 70,000 units. In films, The Dark Knight Rises, Ted, The Bourne Legacy, Expendables II and Men in Black 3, were top draws, grossing a total of $3 million in sales from more than 130,000 units.
In addition, to augment its in-store offering, hmv Canada launched The Vault, its new digital subscription based streaming service and digital download store. Consumers can sign up for a free two-week trial of The Vault by visiting www.inmyvault.com.
Williams continued: “The Canadian consumer still wants CDs and DVDs and expects us to deliver them while adding value to their music experience. We also know that our consumers are counting on us to enhance their music experience in the online space, which is why we launched The Vault this holiday season. This combined retail and online offering is what will drive our business forward in 2013 and enable us to maintain our position as Canada’s most trusted music and entertainment retailer.”
The holiday season was also an exciting time for Purehmv, the company’s loyalty rewards program, with memberships sold increasing 38% compared to the same period in 2011. Additionally new members added in 2012 increased by 8% compared to 2011.
Paul McGowan, CEO of Hilco UK and Chairman of hmv Canada, echoed William’s words. “From the start, we saw a lot of promise in the business at hmv Canada and are delighted to see the business performing so strongly 18 months after our initial investment. These results, combined with the structural advantages of Canada’s retail market that Europe and the U.S. do not have, prove that, by working with all stakeholders – our staff, suppliers, and landlords – and focusing on providing an excellent shopping experience, specialty retailers can thrive in the entertainment sector.”
Hilco UK 2012 Timeline
December 22nd, 2012
As another busy year draws to a close, we take a moment to look back at the transactions and events that shaped the past twelve months for the Hilco UK group of companies with our 2012 timeline – click here to download the PDF.
HMV Canada Continues Giving Canadians “What They Want” this Holiday Season
December 14th, 2012
With just two weeks to go until Christmas, hmv Canada, Canada’s premiere retail destination for music and entertainment, announced today that the holiday campaign, “It’s What They Want,” is achieving plan and providing the company with exciting momentum to close out 2012. The campaign, which began on November 5, is focusing on delivering to consumers the season’s most sought after music, movie and entertainment products.
Leading the news this holiday season is the launch of The Vault, hmv Canada’s new digital subscription based streaming service that gives Canadians another way to access the music they love. By visiting www.inmyvault.com, Canadians can sign up for a free two-week trial and experience the ease of listening to millions of tracks on their computers or mobile devices.
“2012 has been a great year for our business as we’ve worked hard to leverage our brand to develop our in-store value proposition and find new ways to connect with Canadians,” said Nick Williams, President and CEO, hmv Canada. “Our plan is clearly working. Music and film are holding strong and there is a significant increase in new income streams such as Gifts and Collectibles, T-shirts and headphones. As a result, we are on track to achieve our year-end sales targets of $270 million, with December alone accounting for more than $65 million, and trending ahead of our 2012 profit targets.”
According to Nielsen Soundscan, CDs account for approximately 65% of the music market in Canada, while DVDs are even higher at 95%. Further, hmv Canada reports, one out of every two CD’s sold this Christmas will take place through an hmv Canada store.
Williams continued: “We are performing strongly because the market in Canada still supports CDs and DVDs. The holiday season has been a valuable opportunity for us to build on the year’s momentum, drive growth in our business and further validate our role as Canada’s leading specialist entertainment retailer. A terrific release schedule, combined with our in-store promotions and the launch of The Vault, is empowering customers to consume music and entertainment when, where and how they choose. Needless to say, we are achieving key milestones from our 2012 holiday plan and we look forward to carrying this momentum forward into 2013.”
Across hmv Canada’s more than 100 retail locations, new music from acclaimed artists such as Bruno Mars, The Game, Alicia Keys and Ke$ha, along with blockbuster hits such as The Dark Knight Rises, TED and The Bourne Legacy have anchored the holiday campaign. Additionally, hmv Canada’s pop-up stores are playing a key role in broadening hmv Canada’s offering to Canadians by giving them even more access to the industry’s deepest catalog of music and collectibles.
Finally, hmv Canada plans to end the holiday season with a bang through value add Boxing Day offerings. And, of course, customers will continue to have the opportunity to receive their free two week trial to The Vault, giving them the perfect opportunity to build the right playlists for their New Year’s parties.
HMV Canada launches The Vault
December 5th, 2012
hmv Canada, Canada’s premiere retail destination for music and entertainment, officially announced today the launch of The Vault, its new digital subscription based streaming service. With millions of tracks available and constantly growing, the Vault will offer Canadians unlimited access to hottest new releases, the biggest hits, and deepest catalog in music.
“HMV is incredibly excited to launch The Vault,” said Nick Williams, President and CEO of hmv Canada. “Canadians look to us as a trusted source to help them create their own music experience. The Vault is a natural extension of that commitment.”
Canadian music enthusiasts can visit The Vault for a free 2-week trial starting today. The Vault will offer users the ability to discover music, build a personal library, create custom playlists and share content through social feeds, all for one low monthly fee of $4.99 unlimited access on a personal computer or $9.99 for unlimited access on both web & mobile devices. In addition, users will also have the ability to download individual tracks and/or albums at The Vault Store, hmv’s new digital download store.
Williams continued, “The launch of the Vault is a clear indication of hmv Canada’s ability to continually evolve to meet the ever-changing needs of our customers, while offering them an unparalleled music and entertainment experience. This is an important investment in the company’s future and is another positive step resulting from our acquisition by Hilco in July 2011”
Fans can unlock The Vault at www.inmyvault.com.
The Hilco Newsletter for the third quarter of 2012 is out now
October 29th, 2012
The latest edition of the Hilco Newsletter is out now – click here to read it.
Hilco UK and Valco nominated for Insolvency & Rescue Awards
August 24th, 2012
Hilco UK and Valco Capital Partners have reached the finals of the Insolvency & Rescue Awards 2012. Hilco is shortlisted in the ‘Business Rescue of the Year – £21m plus’ category for the restructuring of furniture retailer Habitat while Valco is nominated in the ‘Business Rescue of the Year – up to £20m’ category for the rescue of fashion and homeware brand Nicole Farhi.
The winners will be announced at the awards ceremony in October.