Wigan HMV store spared the chop

HMV in the Grand ArcadeHMV in the Grand Arcade
HMV in the Grand Arcade
Wigan's recently opened HMV store appears to have been spared the chop after the company was rescued from administration but 27 outlets in the chain were said to be closing with immediate effect.

The business as been acquired by Canadian retailer Sunrise Records, safeguarding the future of nearly 1,500 staff.

A list of those set to close has not yet been published, but it was business as usual in the Grand Arcade branch on Tuesday morning and this outlet, which only opened in November after a five-year Wigan hiatus, did not appear on a long "at risk" list published when the firm first called in the administrators.

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Grand Arcade manager John Sanson said: "It looks like ours is one of the ones to continue.

"I spoke to the manager this morning and he was upbeat and chipper.

"These are early days but the shop had a good period of trading over the Christmas period and it got a very good deal off us. Also we have not had any notifications from landlords or KPMG which is a good thing."

The closure of the 27 unprofitable stores will result in 455 redundancies.

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

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

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.

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"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.

The likes of Poundworld, Toys'R'Us and Maplin all went bust last year amid brutal trading, while heavyweights Marks & Spencer and Debenhams announced plans to shut hundreds of stores.

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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."

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