Photo: Wenn
HMV has announced profits of £16.7 million, less than two years after going into administration.
On 14 January 2013 the firm announced it had amassed £170 million in debt and threatened to close 223 shops, putting more than 4000 people out of work.
However, thanks to significant restructuring, the firm now claim that in less than two years all the remaining 140 shops are now profitable. The Telegraph reports that from 29 January to 28 December last year the chain recorded £16.7 million in operating profit. A reknewed focus on live music, signing events and relationships with major film companies all have helped the brand turn the corner.
In fact the results have been so good that HMV boss Paul McGowan recently speculated that HMV may soon be beating online giant Amazon.
He noted that there has been a 3 per cent increase in total sales of physical music, with like-for-like sales increasing by around 14 per cent since July. CD and vinyl sales have increased 21 per cent.
"It's only a matter of time before we overtake Amazon," he told the Telegraph. "HMV is re-engaging with music shoppers and getting them back into shops. This is about being an authority in music, not selling music as a commodity."
McGown also announced that HMV would be opening four new UK stores, as well as eight new shops in Ireland with 46 extra concession stores.
