HMV
HMV is an international music and entertainment retailer, founded in London, England in 1921. The brand is owned by Hilco Capital and operated by Sunrise Records, except in Japan, where it is owned and operated by Lawson.
The inaugural shop was opened on Oxford Street in London by the Gramophone Company, who had already established the His Master's Voice symbol on their sound equipment, and from 1909, as its own record label. In the 1960s, HMV became a chain across London, and expanded nationwide in the 1970s. It expanded internationally in the mid-1980s, and opened its 100th UK shop in 1997.
In 1998, the retail operations were divested from EMI, to form what would become HMV Group plc. In 2007, HMV bought rival retailer, Fopp, as well divesting its Japanese business. In April 2013, HMV was rescued by Hilco Capital for an estimated £50 million after falling into administration. In February 2019, the Canadian retailer Sunrise Records rescued 100 of the 127 HMV shops from Hilco after a second administration, but with Hilco retaining ownership of the HMV brand.
In May 2023, Sunrise Records announced HMV would return to Ireland, followed by an announcement in November 2023 that it would also enter the Belgian market. In February 2024, Sunrise Records announced HMV would re-enter the Canadian market as a store-within-a-store concept within Toys "R" Us locations. In October 2025, Sunrise Records announced that HMV would open in the Netherlands.
History
Origins
In 1898, Francis Barraud painted His Master's Voice, which depicted his late dog, Nipper, listening to a phonograph. The painting and subsequent trademark rights would be sold in 1899 to the Gramophone Company, using it on its sound equipment, and in 1909, created their His Master's Voice record label.In 1921, the Gramophone Company opened the first dedicated His Master's Voice shop at 363 Oxford Street, London, in a former men's clothing shop. Composer Edward Elgar participated in the opening ceremonies. In March 1931 the Gramophone Company merged with Columbia Graphophone Company to form Electric and Musical Industries Ltd, with the Gramophone Company becoming part of EMI.
The original HMV shop was severely damaged by a fire in 1937, but was rebuilt and reopened two years later on 8 May 1939. Sir Thomas Beecham opened the new shop.
Expansion
In 1966, HMV began expanding its retail operations in London. Throughout the 1970s, the company continued to expand, doubling in size, and in six years became the country's leading specialist music retailer. It faced strong competition, however, from Virgin Megastores, established in 1976, and from Our Price, established in 1972, which had numerous high street retail shops around the UK. Subsequently, HMV overtook Our Price in popularity and threatened its existence, having established a chain of newer and larger shops.The company opened its flagship shop at a new location at 150–154 Oxford Street in 1986, announcing it was the largest record shop in the world at the time, and the official opening was attended by Bob Geldof and Michael Hutchence. Growth continued for a third decade into the 1990s, with the company reaching over 320 shops including in 1990 its first shop in the U.S. located at 86th and Lexington in New York City, which was the largest music shop in North America at the time. HMV celebrated its 75-year anniversary in 1996.
In February 1998, EMI entered into a joint venture with Advent International to form HMV Media Group led by Alan Giles, which acquired HMV's shops and Dillons, leaving EMI with a holding of around 45%. The new joint venture then bought the Waterstones chain of bookshops to merge with Dillons.
Flotation
By 2002, EMI's holding in HMV Media was 43%, with Advent International owning 40% and management the remainder. The company floated on the London Stock Exchange later in the year as HMV Group plc, leaving EMI with only a token holding.HMV operated a loyalty scheme branded as "purehmv", first launched in August 2003, but subsequently closed and relaunched in 2008. The scheme awarded cardholders points for purchases, which could be collected and redeemed on a number of rewards including vouchers, memorabilia and signed merchandise. "purehmv" has since closed and will be replaced by a new loyalty scheme, the launch date of which is yet to be announced.
The group became susceptible to a takeover following a poor period of trading up to Christmas 2005. Private equity firm Permira made a £762 million conditional bid for the group on 7 February 2006, which was rejected by HMV as an insufficient valuation of the company. Permira made a second offer which increased the value, although HMV declined it on 13 March 2006, subsequently issuing a statement that the offer undervalued the medium and long term prospects for the company, resulting in Permira withdrawing from bidding.
Acquisitions
In 2006, the HMV Group purchased the Ottakar's book chain and merged it into Waterstones. The merger tied into HMV's strategy for growth, as many of the Ottakar's branches were in smaller towns. The Competition Commission provisionally cleared HMV Group, through Waterstones, for takeover of the Ottakar's group on 30 March 2006, stating that the takeover would "not result in a substantial lessening of competition". Waterstones then announced that it had successfully negotiated a takeover of Ottakar's on 31 May 2006. All 130 Ottakar's shops were rebranded as Waterstones prior to Christmas 2006. In March 2007, new group CEO Simon Fox announced a 10% reduction over three years in the enlarged Waterstones total shop space, comprising mostly dual location shops created by the acquisition of Ottakar's.On 29 June 2007, the entertainment retailer Fopp went into administration, with the closure of 81 shops and 800 staff made redundant. On 31 July HMV bought the brand and six shops that it said had traded profitably, saving around 70 jobs.
On 1 September 2008, HMV launched "Get Closer", a social networking site allowing users to import their own music library, rivalling other providers including digital music stores Napster and the iTunes Store. The site was closed in September 2009.
On 24 December 2008, HMV's rival Zavvi, successor to entertainment retailer Virgin Megastores, entered administration. On 14 January 2009 a placing announcement by HMV revealed that it intended to acquire 14 of Zavvi's shops. On 18 February 2009 five additional Zavvi shops were purchased by HMV Group, to be rebranded as HMV outlets. An additional former Zavvi shop in Exeter's Princesshay development was also added. The acquisitions were investigated and cleared by the Office of Fair Trading in April 2009.
In the 2008 MCV Industry Excellence Awards, HMV was given the title Entertainment Retailer of the Year.
In January 2009, HMV bought a 50% stake in MAMA Group, forming a joint venture with the group called the Mean Fiddler Group. The deal introduced the HMV brand to live music venues, including the Hammersmith Apollo. On 23 December 2009, it bought the whole of the MAMA Group in a live music takeover deal worth £46 million.
In September 2009, HMV bought 50% of 7digital for £7.7 million, as part of a strategy to increase its digital content offering. 7digital provided HMV's music download service, and the company planned to introduce an e-books service for Waterstone's.
In October 2009, HMV established a joint venture with Curzon Cinemas as part of chief executive Simon Fox's plan to bring cinemas to HMV and Waterstone's shops across England. The first trial cinema opened above the existing HMV shop in Wimbledon, in a former storage room converted into three separate screens and a bar. It has its own entrance, allowing access outside shop hours, and one within the shop. The trial was deemed a success, and it had been planned to open additional cinemas in HMV's Cheltenham shop, and Waterstone's in Piccadilly, London.
On 5 January 2011, HMV announced that profits would be at the lower end of analysts' forecasts due to falling sales, resulting in the share price falling by 20% and an announcement of the group's intention to close 40 HMV shops, as well as 20 Waterstone's bookshops, mainly in towns and cities where the company operated at multiple locations. The first of the shop closures began at the end of January 2011.
The sale of Waterstone's to A&NN Capital Fund Management for £53 million was completed on 29 June 2011, and was approved by the vast majority of shareholders at an emergency general meeting.
HMV sold the Hammersmith Apollo to AEG Live and Eventim in May 2012 for £32 million. It sold the remainder of MAMA Group to Lloyds Development Capital in December 2012 for £7.3 million, which also included the company's 50% stake in Mean Fiddler Group.
Administration (2013)
On 15 January 2013, HMV Group appointed Deloitte as company administrators and suspended shares, putting its 4,350 UK employees at the risk of redundancy. Gift vouchers were initially declared void since holders are classified as unsecured creditors to whom the company owed the value, but were accepted again from 22 January 2013.Restructuring firm Hilco UK bought HMV's debt from its creditors The Royal Bank of Scotland and Lloyds Banking Group, as a step towards potentially taking control of the company. It was revealed that the total debt Hilco had bought amounted to around £110 million, and that HMV owed around £20 million in tax to HM Revenue and Customs at the time of its entry into administration.
On 31 January 2013, it was reported that 190 redundancies had been made at the head office and distribution centres.
On 7 February 2013, Deloitte confirmed that 66 shops had been identified for closure. No fixed date was given for the closures but they were expected to take place in the following two months. The next day, Deloitte confirmed that an additional 60 redundancies, including the chief executive Trevor Moore, had been made at the group's offices in London, Marlow and Solihull. Deloitte confirmed on 20 February 2013 that an additional 37 shops would close. On 26 February 2013, six shops were sold to supermarket chain Morrisons.
On 28 February 2013, eight shops in Hong Kong and Singapore were sold to AID Partners Capital Limited and the operation then became independent from HMV Group that was bought by Hilco UK. This transaction also enabled AID Partners Capital Limited to own the rights to use the HMV brand in Hong Kong, Macau, China, Taiwan and Singapore.
By 23 March 2013, Deloitte was seeking to complete a deal to sell 120 shops as a going concern. The decision to close several shops that had previously been identified for closure were reversed following talks with landlords.