Struggling HMV Canada goes into receivership, owing $39M to debtor
TORONTO -- An Ontario Superior Court of Justice approved an application to place HMV Canada Inc. into receivership on Friday.
HUK 10 Ltd., which lent money to the struggling chain, filed the application to the court Thursday.
It claimed HMV owes it nearly $39 million and has received no cash payments since Nov. 2014.
HMV would require between $2 million and $5 million annually in cash to stay open, according to court filings, and the company was losing $100,000 a day as customers turned towards online media in recent years.
Senior Justice Geoffrey B. Morawetz approved the application and appointed Gordon Brothers Canada ULC and Merchant Retail Solutions ULC as the agent to sell HMV's remaining merchandise.
Legal documents state that closing stores must cease operations by April 30.
HMV operates 102 stores in Canada and employs about 1,340 people, most of them at its retail locations.