Debt-ridden music retail giant HMV likely to hold Hong Kong’s biggest liquidation sale in a decade
- HMV said last month it was closing its seven Hong Kong shops after years of falling demand for CDs and DVDs
- Firm is likely to sell off its remaining stock at heavily discounted prices, say liquidation experts
Debt-ridden music giant HMV is likely to opt for the biggest liquidation sale in a decade in Hong Kong when it meets with creditors on Thursday, according to experts.
“For a big retail music chain like HMV which has a big stock of CDs, DVDs, audio equipment and lifestyle products, the most likely option is to have a big liquidation sale day to sell the outstanding stock at a heavily discounted price,” said Mat Ng, managing director of JLA-Asia, a veteran liquidation expert.
HMV Digital China Group, owner of the HMV music retail chain, said last month it was winding up its 25-year-old CD and DVD stores in Hong Kong, after years of wilting demand in the era of online streaming.
Ng said the last major liquidation sale was that of 62-year-old Tai Lin Radio Services, a home electronic-appliance chain which closed down in October 2008 under the weight of over HK$100 million of debt. That sale saw items such as TV sets and digital cameras cut by 50 per cent or more from their normal prices.
GEM-listed HMV Digital, chaired by entertainment tycoon Stephen Shiu junior, put its HMV Retail unit into provisional liquidation on December 18. The stores that had once attracted superstars such as Mariah Carey, Boyzone and Backstreet Boys to meet their fans have not been able to generate sufficient income to pay their rent and other expenses.
