Canadian vinyl record shop boss Doug Putman joins bidding war for HMV
Canadian vinyl record tycoon Doug Putman has made a dramatic late bid to snap up collapsed music store HMV in a move that could hamper Mike Ashley's takeover plans.
Douglas Putman, who owns Canadian chain Sunrise Records, has entered the auction and is now the front-runner ahead of the Sports Direct tycoon, according to media reports.
HMV fell into administration in December for the second time since 2013 as the chain struggles to fight off competition from music streaming services such as Spotify. Restructuring specialist Hilco, which owns HMV, said the collapse was down to a “tsunami” of challenges in the retail sector.
Retail billionaire Ashley had been widely expected to secure a rescue deal for HMV after placing a bid with administrator KPMG and stating his demands, which included a six-month rent break.
But Putman is now in pole position after offering to buy both the retailer and the rights to the HMV brand, according to the Sunday Telegraph.
A successful Putman bid would be the second HMV takeover for Sunrise Records, which bought 70 of the chain's stores in Canada following its collapse in 2017.
Sunrise Records, which was founded in 1977 and now has 82 branches, has defied the challenges facing traditional music stores by cashing in on the resurgence of vinyl records.
The challenger bid will unsettle Ashley, who has been tightening his grip on the British high street with a string of takeovers in recent months.
The outspoken tycoon has recently added Sofa.com and ScS to his retail empire, but may need to up his offer if he is to snap up HMV as well.
Read more: Mike Ashley tells HMV landlords: Give me six months rent-free
The dramatic new entry comes amid reports Ashley has clashed with Topshop boss Sir Philip Green over his HMV bid.
Green is encouraging Hilco to demand more cash from Ashley for the rights to the HMV brand, according to the Sunday Times.