The chances of Hilco, owners of HMV Canada, taking over the British chain are looking stronger today as the major labels indicate they'd be willing to support the company through 'generous credit'.
Which is nice, although the majors were already offering splendid terms to HMV and it didn't really do much good.
Hilco have made something of a success in Canada, but this CBC report which tries to explain that success doesn't really offer much enlightenment:
After downsizing to 113 stores in the past year and a half, [HMV Canada's Nick] Williams said HMV Canada is now preparing to re-enter some of the markets it left, particularly in malls.Hmm. Green Lantern t-shirts and novelty mugs. Doesn't HMV in the UK already sell a lot of that sort of tat already?
He credits the retailer's perseverance in the Canadian market to a decision to abandon several low-margin entertainment products, like video games and technology hardware like tablets and iPod docking stations, in favour of higher margin branded products like superhero T-shirts and coffee mugs branded with rock bands like Kiss.
The shift in selection helped HMV Canada deliver strong holiday shopping sales, with $65.4 million of sales over the period, coming in better than its $63.5 million holiday revenue target.