nicetommy
Active Member
Music World To Close After Declaring Bankruptcy
Monday November 12, 2007
CityNews.ca Staff
Another one bites the dust. It's a song by the rock group Queen and you can still buy the CD at Music World. But you'd better hurry. The last Canadian-owned national music chain has confirmed it will be going out of business after being sold to new owners and immediately being put into bankruptcy protection.
Music World has 72 stores across the country, including a number in the Toronto area. But sales aren't what they used to be - the franchise lost more than $9 million last year. It plans to stay open until at least January to take advantage of holiday sales, which means you may be able to find a bargain as it attempts to liquidate its stock. But for its 648 employees across Canada, it will be a grim Christmas. They're facing layoffs starting in the New Year.
The new owners say they may keep a few outlets in key locations open with a new focus on overall entertainment, but suspect the era of the big record store has come to an end in Canada. HMV, which is British, remains the biggest such chain in the country and has already started a movement away from pitching music to other entertainment options, like DVDs and video games.
Music World is the latest casualty of war as an army of listeners and buyers head straight for the Internet to download the music they want directly. Retailers simply can't match the prices or the convenience, not to mention the ongoing illegal downloading which doesn't cost consumers a cent. And competitors like Wal-Mart have begun to sell CDs as a loss leader to attract customers.
The franchise joins other broken records on the scrap heap of history, including Sam the Record Man, which closed its famous flagship store for good at the end of June. All that remains is the sign, which has been declared a historic landmark and won't be taken down.
Monday November 12, 2007
CityNews.ca Staff
Another one bites the dust. It's a song by the rock group Queen and you can still buy the CD at Music World. But you'd better hurry. The last Canadian-owned national music chain has confirmed it will be going out of business after being sold to new owners and immediately being put into bankruptcy protection.
Music World has 72 stores across the country, including a number in the Toronto area. But sales aren't what they used to be - the franchise lost more than $9 million last year. It plans to stay open until at least January to take advantage of holiday sales, which means you may be able to find a bargain as it attempts to liquidate its stock. But for its 648 employees across Canada, it will be a grim Christmas. They're facing layoffs starting in the New Year.
The new owners say they may keep a few outlets in key locations open with a new focus on overall entertainment, but suspect the era of the big record store has come to an end in Canada. HMV, which is British, remains the biggest such chain in the country and has already started a movement away from pitching music to other entertainment options, like DVDs and video games.
Music World is the latest casualty of war as an army of listeners and buyers head straight for the Internet to download the music they want directly. Retailers simply can't match the prices or the convenience, not to mention the ongoing illegal downloading which doesn't cost consumers a cent. And competitors like Wal-Mart have begun to sell CDs as a loss leader to attract customers.
The franchise joins other broken records on the scrap heap of history, including Sam the Record Man, which closed its famous flagship store for good at the end of June. All that remains is the sign, which has been declared a historic landmark and won't be taken down.
