Date
19 November 2017
Crosby Capital chief executive Kelvin Wu says the mainland market is big enough for two HMV stores in each major city. Photo: HKEJ
Crosby Capital chief executive Kelvin Wu says the mainland market is big enough for two HMV stores in each major city. Photo: HKEJ

Crosby Capital eyes HMV spin-off, China foray

Crosby Capital Ltd. (08088.HK) is planning to spin off HMV Ideal Ltd. when the business regains its footing, the Hong Kong Economic Journal reported Monday, citing chief executive Kelvin Wu.

Wu bought the Hong Kong and Singapore operations of HMV Retail Ltd. last year from Britain’s HMV Group through his private equity firm AID Partners Capital.    

“A sizable initial public offering could be an idea after the company’s financial performance is back in shape,” Wu was quoted as saying.

Hong Kong’s listing rules require candidates to have a stable management in the three-years preceding the application.

HMV Ideal operates as an entertainment hub after Wu rescued the former retailer of audio-visual products from near bankruptcy. It plans to add coffee shops to the mix.

Sales in Hong Kong have grown about 10 percent this year, Wu said.

The company’s Central flagship has seen the number of visitors double after renovation. The newly opened store is expected to make HK$5 million (US$645,121) to HK$6 million in monthly revenue.

HMV owns six outlets in Hong Kong including HMV Kids in Hung Hom and HMV Kafe in Happy Valley.

Combined sales in Hong Kong and Singapore are about HK$300 million a year.

HMV Ideal is tapping opportunities in mainland China by working with distributors of audio-visual products.

The company plans to open its first mainland store in Shenzhen and expand to other key cities, Wu said.

He said the mainland market is big enough for two HMV stores in each major city.

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