hmv Canada Enters into New $25 Million Credit Agreement with Wells Fargo Capital Finance
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.
SOURCE HMV Canada Inc.