It appears as if the popularization of digital media has officially taken another victim. A recent report from the Globe and Mail has announced that an Ontario Superior Court of Justice has approved a request from one of HMV Canada’s lenders to put the chain into a state of corporate bankruptcy, a decision which has effectively shut down its remaining locations.

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HMV Canada is no stranger to hard times with court filings revealing that the chain has been losing money since 2013. By the end of 2016, their annual sales had dropped by almost 30 percent, a decrease from $266 million to $193 million.

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The lender who filed the application, an affiliated firm named HUK 10, is owed approximately $40 million from HMV Canada. In the affidavit filed with the Ontario Superior Court of Justice, HUK 10’s director Christopher Emmott claims that the firm has not received a single payment from HMV Canada since November of 2014.

The approval of HUK 10’s application means that all of HMV Canada’s remaining merchandise will be sold in an effort to repay the large debt, and all remaining stores have been ordered to cease operations by April 30th, 2017.

 

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