So there’s good news and bad news. The good news: as suspected, Hilco, the proud new owners of HMV, won’t be shutting the company down. The bad? Well, only half the stores are being saved, which, according to my highly complicated business analysis, means the other half of the stores are going to get shut down.
The strategy is pretty much the same that Hilco used when it took control of HMV Canada in 2011 — shut down the stores, and move the focus to digital sales and technology. In Canada, Hilco shut down the flagship store in Vancouver — the equivalent of the Oxford Street store in London — and made a serious move into digital downloads, creating a 10 million-strong MP3 library for purchase, and rolling out a serious rewards programme for members.
Given that HMV Canada is actually doing pretty well (at least, it’s reporting a profit and isn’t totally mired in debt), it’s very likely that we’ll see a similar strategy taken here in the UK — refocus the business more on digital and merchandise, and less on those actual physical CDs.
Hilco has yet to confirm which stores will be shut down and when (and whether or not we can anticipate a fire sale), so until then, the employees will be living in fear, which kinda sucks. Still, I suppose we should be grateful that the whole company isn’t going belly-up. [This is Money - Yahoo]