The announcement was made some five years after HMV Retail in the U.K. filed for bankruptcy. But the brand was kept going in Hong Kong, where it had operated for more than 25 years, under the parentage of HMV Digital China, a stock market-listed company which is also involved in artist management, distribution and productions of films, television programs, music production and money lending. At one stage HMV Digital China (formerly known as China 3D Digital) saw the HMV outlets, not only as an ongoing retail proposition, but also as a vehicle for expansion into mainland China.
This week, however, HMV Digital China admitted defeat and announced the voluntary winding up of the Hong Kong retail unit. Liquidators have been appointed and may attempt to find new investors for a restart of the retail business.
HMV Digital’s explanation of how it retail operations arrived at this point, paint an ugly picture. Revenues are down 41% in the first 11 months of this year, compared with 2017, despite the company’s shift away from CDs and DVDs and into related electronics, games and toys.
“The emergence of AirPods has resulted in a significant drop in sales for our bestselling earphones, coupled with a seemingly saturated market for speakers, the lack of improvement in the traditional audio-visual sales and a general change in the economic environment, which led to an overall decline in stores sales and in turn a rapid decrease in sales for HMV Retail in the past few months. Suffering from operational difficulties, HMV Retail was unable to escape from the crushing force of the wheel of history,” the HMV Digital China said in a regulatory filing.
The HMV retail business in Canada had closed all its 102 stores last year. It explained that on the impact of online streaming media.