Partly Cloudy

Partly Cloudy

max temp: 14°C

min temp: 7°C

ESTD 1874 Search

WIN A NEW HYUNDAI i10 - See the EADT on June 8 for full details

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

Thomson Airways' new Boeing 787 Dreamliner touching down at Stansted.

Stansted Airport today marked the arrival of the latest in airline technology with the launch of a new long-haul service from the Essex terminal.

'Love every drop' branding on an Anglian Water van.

Regional water and sewerage services group Anglian Water has announced an increase in underlying annual profits, following a year which marked the end of a five-year settlement with regulator Ofwat.

Frank Brumby, eastern region chairman of R3.

East of England business victims of late payment saw more than one in six (16%) of their invoices paid late in the last six months, according to research by insolvency trade body R3.

An LA Fitness gym.

Low-cost gym operator Pure Gym is to acquire mid-market rival LA Fitness, picking up 43 clubs for an undisclosed sum thought to be in the range of £60million to £80m.

B&Q parent Kingfisher said it was ploughing on with a shake-up plan

B&Q parent Kingfisher said today it was ploughing on with a shake-up plan “at pace” as it reported a first quarter slide in sales at the DIY chain.

Sarah Howard, president of Suffolk Chamber of Commerce, and Mark Pendlington, chairman of New Anglia Local Enterprise Partnership, at the celebration marking the first year of work by the New Anglia Growth Hub.

Supporters and staff from the New Anglia Growth Hub today celebrated its first year of work.

The new Escape lounge at Stansted Airport.

A new business lounge at Stansted Airport has been used by more than 9,000 visitors in its first month.

Rooney Anand, chief executive of Greene King.

Proposals from pubs and brewing company Greene King designed to address concerns over its agreed acquisition of the Spirit Pub Company look set to be backed by the UK’s competition authority.

Angus Berry, energy manager at Thames Water, and Richard Robey, sales and marketing director at Haven Power.

Haven Power, the specialist supplier of electricity to UK businesses, has signed a deal with Thames Water worth more than £500million over the next five years.

Retail sales are

Retail sales are “bounding ahead” as falling prices and a boost to consumer spending power is giving retailers the most upbeat outlook for 27 years, according to new figures.

Most read

Most commented

Topic pages