Business Irish

Wednesday 1 October 2014

HMV/Xtra-vision business set to make 'substantial profits' this year

Gordon Deegan

Published 16/08/2014 | 02:30

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The HMV shop on Grafton Street
The HMV shop on Grafton Street

The combined HMV/Xtra-vision business in Ireland is to make 'substantial profits' this year.

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That is according to the managing director of Hilco Capital Ireland, Larry Howard. In April last year Hilco purchased the HMV business from receiver, Deloitte & Touche.

The turnaround specialists are now operating 107 stores under the Xtra-vision and HMV brands in Ireland, with Ballymena set to be the ninth stand-alone HMV store when it opens at the end of the month.

According to Mr Howard, 46 stores operate under the dual brand of Xtra-vision and HMV with the remainder Xtra-vision only.

He said: "We will make substantial profits this year after making substantial profits last year."

Success

HILCO has already pumped €2.7m into rejuvenating the HMV business here and Mr Howard added: "Everything is all good and business has been very strong. The performance of the Xtra-vision and HMV brands have been a major success."

He pointed out the physical sales of CDs and DVDs still account for respectively 66pc and 70pc of all sales in Ireland.

He said: "The market for DVDs and CD music is up in Ireland this year. That may be down to the old HMV business shutting down last year, but it is still a positive."

Mr Howard confirmed that numbers employed by the HMV-Xtra-vision business now total 1,100.

HMV is to also open a store in Castlebar later this year and Mr Howard confirmed that the firm is in negotiations on opening more stores.

Mr Howard said that sales at the recently opened HMV Ireland's online store "have been very impressive".

Mr Howard said that an Xtra-vision movie streaming service will not happen this year with HILCO reviewing its options in launching a streaming service in 2015.

Mr Howard was commenting yesterday as new documents show that the receiver to HMV Ireland Ltd has to date received more than €475,000 in fees and expenses since the firm went out of business in January of last year.

New documents filed with the Companies Office show that David Carson of Deloitte & Touche based at Earlsfort Terrace in Dublin received €176,406 for the six month period between January 16th and July 15th of this year. This is in addition to the €300,495 received by Mr Carson between January 2013 and January of this year.

The receiver documentation shows that Mr Carson has received €1.263m from the sale of assets to 'various' purchasers on various dates between January and July.

The figures show that former employees have received €446,800 in the period in the same period. In total, former employees received €934,374 in payments between January 2013 and July of this year.

HMV operated 16 stores when the business collapsed early last year. The re-opened stores are located at Grafton St, Henry St, Dundrum and Liffey Valley in Dublin; the Crescent Shopping Centre in Limerick; the Quays shopping centre in Newry; Donegal Arcade in Belfast and Edward Square in Galway.

Irish Independent

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