HMV's liquidation sale now unlikely as creditors opt to sell 100,000 records and DVDs by tender. The culprit? Hong Kong's sky-high rents

By Enoch Yiuenoch.yiu@scmp.com / https://www.scmp.com/business/companies/article/3012646/hmvs-liquidation-sale-now-unlikely-creditors-opt-sell-100000?utm_medium=partner&utm_campaign=contentexchange&utm_source=EdgeProp | June 7, 2019 12:04 PM SGT
HMV's much anticipated liquidation sale is unlikely to happen now after the troubled retailer's creditors on Friday decided to opt for a tender sale to clear out roughly 100,000 CDs, DVD, Blu-Ray discs and other remaining stock.
They blamed Hong Kong's famously high rents for the decision to call off what would have been the city's largest liquidation sale in a decade. The plan now is to sell off the whole collection in one go to the highest bidder.
"The creditors worried that a liquidation sale might not be a good idea as the cost to rent a venue to conduct the sale may be very expensive," said Wong Sun-keung, a partner at accounting firm Vision AS, who is handling the liquidation of HMV.
Wong had been negotiating with a landlord in Causeway Bay for a potential venue.
"We would also need to hire people to handle the sale. The cost for the rent and wages would be high while the sale prices would probably be heavily discounted," Wong said in a telephone interview after the creditors' meeting.
As such, a seven-member committee representing the 340 creditors, decided to opt for a tender sale in June to find a buyer who is willing to buy the entire batch of CDs, DVD, Blu-Rays, Vinyl records and other items.
"We will sell all the remaining stocks in one go," Wong said.
HMV's vast array of unsold stock is being stored in two containers in Sun Tin and Yuen Long. These include about 20,000 CDs, 50,000 DVDs, 24,000 Blu-ray discs, 9,000 vinyl records, and several of HMV's iconic dog statues.
Wong will advertise in some newspapers within next two weeks to invite companies or individuals to submit a bid with a proposed price for the stocks. The highest bidder would take the lot.
"Only if the tender offers were too low would we consider a liquidation sale. But now we prefer to use a tender to sell the remaining stock, because it's simpler and we believe we can get a...