Partly Cloudy

Partly Cloudy

max temp: 14°C

min temp: 8°C

ESTD 1874 Search

UK: Restructuring firm Hilco seizes control of HMV through debt deal

13:32 22 January 2013

The HMV store in Ipswich

The HMV store in Ipswich

Archant

STRUGGLING music and DVD retailer HMV was thrown a lifeline today as its debt was acquired by restructuring specialist Hilco.

shares

News of the development came a day after Hilco was appointed as an adviser to HMV’s administators, from the accountancy firm Deloitte.

The move effectively gives Hilco control over HMV and gives Deloitte more time to secure the future of the 92-year-old company, which has 223 stores around the UK, including branches in Ipswich, Bury St Edmunds, Colchester and Chelmsford, and employs more than 4,100 people.

Hilco already owns the HMV Canada business, having acquired it from HMV in 2011 as the UK group off-loaded assets in order to secure new borrowing facilities.

At the time of its collapse into administration, HMV is thought to have owed its banks – Lloyds and RBS – around £176million. However, Hilco is likely have paid substantially less than this to acquire the debt, in view of HMV’s fall into administration.

Following the firm’s collapse, HMV chief executive Trevor Moore said he was confident that management could still secure a future for the chain.

Entertainment giants, including Universal Music, Warner Music and Sony are said to be in favour of a buy-out by Hilco, and are reportedly planning to offer HMV suitors generous credit and supply terms to help maintain its high street presence.

Deloitte said last week it had received more than 50 expressions of interest in HMV, from parties including other retailers, private equity firms and wealthy individuals. Both Deloitte and Hilco declined to comment yesterday.

Related articles

shares

0 comments

Sainsbury's chief executive Mike Coupe.
Photo: Sainsbury's/PA Wire

The City will this week look for details of how Sainsbury’s plans to overhaul Argos when the supermarket posts its annual results next week, while trading at rival Morrisons and banking giant HSBC will also be in the spotlight.

Avanti supports CLIC Sargent charity

Networking group getting Muddy and wiggy for young cancer patients

Nick and Kim Hoare from Ivy Grange Farm near Halesworth who run a glamping site with five yurts.
Photo: Nick Butcher

A glamping firm hoping to banish memories of sodden sleeping bags and leaking tents is catching the eye of campers after an upmarket break.

Royal Bank of Scotland has reported a sharp increase in first quarter losses.

Royal Bank of Scotland has reported a first-quarter pre-tax loss of £968million, more than double last year’s figure of £446m.

Tom Boother is running from Land's End to John O'Groats in aid of EACH and Great Ormond Street. Marquis Suffolk is lending Tom a motorhome for him to sleep in during the challenge.

Tom’s charity challenge - running 816 miles from Land’s End to John O’Groats

Most read

Great Days Out

cover

Click here to view
the Great Days Out
supplement

View

Most commented

HOT JOBS

Show Job Lists

Streetlife

Newsletter Sign Up

Great British Life

Great British Life
MyDate24 MyPhotos24