TORONTO - HMV Canada insists it's business as usual despite an announcement by its British parent that it may sell off the Canadian stores.
HMV's Canadian division said in a statement Monday that it is currently reviewing its options and moving forward with growth plans and a new business model.
The company said it is finalizing plans to open new concept locations across the country but didn't go into details. HMV Canada president Nick Williams said the chain has plans to evolve its business and any change moving forward will have a positive impact on the Canadian retail operation.
British-based HMV Group (LSE:HMV) has tried to survive slumping sales in the digital download age by offering a wider range of products, including a bigger selection of DVDs, video games and cellphones.
But analysts say its 125 Canadian locations do little better than break even.
Parent company HMV said Friday that it was pondering the sale of its Canadian stores and British bookstore unit Waterstone's as it drowns in the equivalent of $204 million in debt. The company has warned that it will not be able to meet its loan terms later this year.
