Media magnate Stephen Shiu Jr fights back tears as he reveals defunct HMV’s US$38 million losses in Hong Kong

HMV Digital China chairman Stephen Shiu Jr fought back tears as he apologised to creditors and staff in Hong Kong for having to close down the 25-year old music retailer at a meeting on Thursday.

The emotional tycoon revealed that the local unit of the iconic brand had suffered losses of HK$300 million (US$38.3 million) in just two years as it caved under the pressure of the digital downloads age. He also confirmed there were plans for a possible liquidation sale of the company’s remaining stock of CDs and DVDs lasting between one and three days at a location to be decided.

“I am deeply sorry to wind up HMV, which has led to substantial losses for all the creditors, suppliers and staff. I want to say I am very, very sorry to you all,” Shiu said, tears welling in his eyes, at the beginning of a meeting in Admiralty attended by about 150 creditors and employees.

“The parent company has invested and lost about HK$300 million (US$38.3 million) since the purchase of HMV in 2016. The business has declined very badly in recent months and we could no longer keep HMV retail going.”

It was the first time he has spoken publicly since the GEM-listed company HMV Digital China voluntarily wound up its retail unit, HMV, on December 18, caving under the pressure of the digital download era. The company also has film production and artist management businesses which are not affected.