Boston’s branch of HMV one of 100 staying open after business acquired out of administration

HMV, in Pescod Square, Boston.
HMV, in Pescod Square, Boston.

Boston’s branch of HMV is staying open after the business was acquired out of administration by Canadian retailer Sunrise Records, the Standard has been told.

Sunrise, which is owned by Doug Putman, beat off competition from the likes of British billionaire retail entrepreneur Mike Ashley for the stricken retailer and will acquire 100 stores across the UK in all.

The deal safeguards almost 1,500 staff.

However, 27 unprofitable stores will close with immediate effect, resulting in 455 redundancies.

The Standard has been told, though, the branch in Boston’s Pescod Square is not one of them.

Administrator KPMG will retain a further 122 employees at warehouse functions to assist in winding down operations.

Mr Putman said: “We are delighted to acquire the most iconic music and entertainment business in the UK and add nearly 1,500 employees to our growing team.

“By catering to music and entertainment lovers, we are incredibly excited about the opportunity to engage customers with a diverse range of physical format content and replicate our success in Canada.

“We know the physical media business is here to stay and we greatly appreciate all the support from the suppliers, landlords, employees and, most importantly, our customers.”

HMV became the first high street casualty after Christmas when its then owner Hilco called in corporate undertakers in December.

It was the second time HMV has collapsed in recent years, having filed for administration in 2013. It was at this time, that Boston lost its branch of the chain, only getting it back in the run-up to Christmas last year.

The likes of Poundworld, Toys’R’Us and Maplin all went bust last year amid brutal trading, while heavyweights Marks & Spencer announced plans to shutter hundreds of stores, including their Boston branch.

Several others - including Superdry, Carpetright and Card Factory - have all issued profit warnings.

Will Wright, partner at KPMG and joint administrator, said: “We are pleased to confirm this sale which, after a complex process, secures the continued trading of the majority of the business.

“Our immediate concern is now to support those employees that have unfortunately been made redundant.”

Neil Gostelow, partner at KPMG and joint administrator, added: “We are grateful for the support of all key stakeholders including the suppliers whose support throughout this process has been key in securing this sale.”