However, by the 2000s, with the shift towards online music stores and other factors (including the dominance of HMV), most of these smaller chains downsized or shut down.

Polo Park, West Edmonton Mall, Midtown in Saskatoon, and Metropolis at Metrotown), while retaining as many former HMV employees as possible.

He noted that record labels had become concerned by the closure of HMV because they would not have a prominent location to stock their physical product.

The company's announcement quoted Universal Music Canada president Jeffrey Remedios, who felt that record stores were still important to fans and artists, and that they were "a community hub where passions are shared, art is explored, and lasting journeys begin."

Sunrise plans to maintain the chain's operations under the HMV and Fopp banners, and mirror its larger focus on pop culture merchandise and vinyl records.