hmv Canada Enters into New $25 Million Credit Agreement with Wells Fargo
Building on excellent 2012 results, company successfully closes three-year
banking facility providing added flexibility in executing the business'
strategy, demonstrating its financial strength and stability
TORONTO, Feb. 8, 2013 /CNW/ - hmv Canada, Canada's premiere retail destination
for music and entertainment, announced today the signing of a new three-year
$25 million credit agreement with Wells Fargo Capital Finance, part of Wells
Fargo & Company (NYSE: WFC), that will provide additional working capital
support for the daily operations of the business. The agreement further
demonstrates the company's financial strength and stability.
"We are extremely pleased to have the support of Wells Fargo as we move
forward in executing our business strategy," said Harvey Berkley, Chief
Financial Officer, hmv Canada. "In addition to improving our operating
flexibility and enhancing our capital structure, we believe this new credit
agreement further validates the valuable role we can play in the Canadian
retail market. Most importantly, though, it will help ensure that we
continue creating an enhanced offering to drive our business forward,
strengthening our supplier relationships and maintaining our position as
Canada's most trusted music and entertainment retailer."
Recently, hmv Canada reported that, for the 2012 holiday season, same stores
sales were up 1.4% over the 2011 holiday season and that sales surpassed $65
million. For the year, meanwhile, hmv Canada achieved sales of more than
$270 million. Further, as core CD and DVD sales remained broadly in line
with 2012 forecasts, new and emerging categories such as Gift and Collectibles
achieved a growth of 49%.
"hmv Canada is a brand and business that has a great deal of meaning to the
Canadian market and we are proud to support the company in its growth
efforts," said Holly Kaczmarczyk, head of the Business Credit Division at
Wells Fargo Capital Finance. "We look forward to building on this
relationship and supporting the company's continued success."
About hmv Canada
hmv Canada's first store opened in 1986, from which it has grown to become a
Canadian entertainment market leader with 113 stores from Newfoundland to
British Columbia, including flagship locations in Toronto, Edmonton, and
Montreal. hmv Canada is an innovator in its market, launching in 2009
hmvdigital.ca its digital music store , in 2010, the hmv Pure customer rewards
program, which has attracted over 1.2 million paid cardholders, and in 2012
The Vault music streaming service, giving users access to millions of tracks
to stream on a personal computer or mobile device. hmv has been named
Canadian Music Retailer of the Year for the past 20 years, and has also been
recognized as the Canadian Entertainment Network DVD Retailer of the Year. In
July 2011, Hilco acquired hmv Canada from the UK's HMV Group plc.
About Wells Fargo Capital Finance
Wells Fargo Capital Finance is the trade name for certain asset-based lending,
accounts receivable and purchase order finance services of Wells Fargo &
Company and its subsidiaries, including Wells Fargo Capital Finance
Corporation Canada. Wells Fargo Capital Finance Corporation Canada (also doing
business in Quebec as Société de financement Wells Fargo Capital Canada) is
an affiliate of Wells Fargo & Company, a company that is not regulated in
Canada as a financial institution, a bank holding company or an insurance
company. For more information, visit wellsfargocapitalfinance.ca.
AJ Goodman FTI Consulting 416.649.8059 AJ.Goodman@fticonsulting.com
SOURCE: HMV Canada Inc.
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-0- Feb/08/2013 14:00 GMT
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