HMV have been saved from their ill fate of administration thanks to the drive of customer appreciation for the brand led new owners Hilco to see it as a lucrative opportunity.
The move does mean that HMV will become a leaner business than it previously was, but now 132 HMV stores – along with nine Fopp stores – have been saved from destruction. You can find the full list of remaining stores here
Previously having 233 stores before administration, with fears that over 100 stores will be closed to help the chain survive, new owners Hilco have managed to reduce the number down to around 75.
Hilco CEO Paul McGown will become the new chairman, with former CEO of Steinhoff Group Ian Topping leading the company through to its new future.
MCV reports that in the leaner business model, HMV will be ditching technology and tablets, instead renewing its focus upon core aspects such as âmusic and visual'.
It's unsure if they count their video games department in this sector – especially as administrators Deloitte practically axed a large part of that business off during administration.
It's clear that the reason why HMV has managed to survive such a turbulent time is because everybody wanted the entertainment retail giant to come out of the other side alive.
"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." said McGowan in a press statement.
"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."
"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."
It seems that out of the adversity that's struck the high-street recently, it seems that Jessops has emerged with a strong new direction and Blockbuster know how they're going to survive in a cut-throat sector.
Do you think Hilco made a smart decision in buying HMV?
Can HMV remain a relevant high-street store for much longer, or is it still a ticking time bomb?
Let us know your thoughts by leaving a comment below.
Retaining customer loyalty is a huge part of any business and in situations like HMV's it really pays to have a strong system in place to ensure your customers continue to shop with you. At this year's Europe's Customer Festival top industry gurus will be giving their thoughts on the best practices for keeping your customers loyal to you through thick and thin.