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hmv Canada in New $25MM Credit Agreement with Wells Fargo Capital Finance

February 11, 2013, 08:04 AM

hmv Canada announced the signing of a new three-year $25 million credit agreement with Wells Fargo Capital Finance to provide additional working capital support for the daily operations of the business.

"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."

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. In July 2011, Hilco acquired hmv Canada from the UK's HMV Group plc.

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.


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