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Last updated on April 16, 2014 at 1:21 EDT

hmv Canada Enters into New $25 Million Credit Agreement with Wells Fargo Capital Finance

February 8, 2013

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.


Source: PR Newswire