HMV Digital winds up its Hong Kong retail outlets as CDs and DVDs concede to the onslaught of online streaming media
- ‘HMV Retail was unable to escape from the crushing force of the wheel of history,’ said chairman Stephen Shiu Jnr
- All seven stores are closed and 80 employees dismissed
HMV Digital China Group, owner of the HMV music retail chain, is winding up its 25-year-old CD and DVD stores in Hong Kong, as the last remnants of the once-booming music retailing industry bows to the growing popularity of online streaming media.
HMV will put its HMV Retail unit in provisional liquidation to manage its assets, the company said in a stock exchange filing Tuesday. All seven of its stores were shut on Tuesday, and 80 employees dismissed, according to a person familiar with the matter.
“The company is under negotiation with the landlords of the settlement plans,” chairman Stephen Shiu Jnr said in an announcement. “HMV Retail has not been generating sufficient revenue to cover its own operating expenses and there is no reasonable prospect of making any significant improvement on its financial performance or operation in the foreseeable future.”