Hilco Global Rescues Entertainment Retailer HMV

Hilco and a capital partner bought the iconic British entertainment retailer HMV in 2013 after the company filed for bankruptcy in the UK. HMV, which opened its first store in 1921, collapsed after failing to cope with the rise of online retailers such as Amazon and a move by supermarkets into selling cut-price CDs, DVDs and video games. Hilco acquired HMV for £50M

The Hilco team immediately began a restructuring process, which included closing poorly performing stores and implementing staff and overhead reductions. These actions enabled the continuation of 125 of the chain’s 400 stores and saved 2,500 jobs. To improve company store profitability, HMV developed a broader product range including ancillary products beyond media and grew store traffic with more than 300 high-profile in-store music events annually that featured both new talent and established artists such as Roger Daltry and Sir Paul McCartney.

Since the Hilco Global restructuring and turnaround, HMV has been growing its share of the CD, DVD and video game market in the UK. In 2014, HMV reclaimed the number two spot among entertainment retailers with a nearly 15% market share while returning to profitability and enjoying same store sales growth of 9.2%.

 

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