The agreement is with a subsidiary of Sunrise Records and Entertainment, the parent of Sunrise Records in Canada and HMV Records in the U.K., and it will see the company sell substantially all of the assets of the company’s wholly owned subsidiary, Record Town, the retail, music, film, video and popular business constituting the FYE segment of the Company’s business, for $10 million in cash.
The transaction is expected to close in the first quarter of 2020. The company will hold a stockholders’ meeting seeking to obtain the approval necessary to move the transaction forward. They have announced that they will use all of the proceeds from the transaction to repay outstanding indebtedness and satisfy other liabilities.
The company willcontinue to operate its business in the ordinary course until the transaction closes, and thereafter Sunrise anticipates keeping substantially all of the current FYE employees.
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