HMV has sold its Canadian business to restructuring firm Hilco.
Hilco paid £2m for the business which will be used to reduce the struggling entertainment retailer’s net debt.
HMV has 121 stores in Canada and for its year ending April 24 2010 generated sales of £222m and an operating profit of £2.3m. It has gross assets of £47.3m.
HMV chief executive Simon Fox said: “The board has fully explored the options available for HMV Canada and believes that a sale to HIlco is the correct decision for the business at this time, whilst reducing the operating leverage in the continuing Group.”
“Having received shareholder approval for the disposal of Waterstone’s, and with a refinancing in place, the Group is focusing on clear and tightly defined plans for transforming HMV into a broad-based entertainment business.”