Heavy Rain

Heavy Rain

max temp: 11°C

min temp: 6°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

Fallen trees in high winds have closed roads in Suffolk

Strong winds early today have brought down trees and power lines around the county, causing disruption for morning travellers.

Ipswich Crown Court

A Suffolk nightclub owner who shoved a man in the chest causing him to fall backwards and hit his head on the pavement has been warned he is facing a jail sentence after admitting manslaughter.

Ipswich Hospital on Heath Road, Ipswich.

Ipswich Hospital could finish this financial year on a deficit of up to £12million, with a significant increase in emergency admissions just one of the reasons for the position.

Povey hurled bottles towards Tesco staff because he wanted to go back to prison

A homeless man caused Tesco staff to “run for their lives” as he hurled bottles of alcohol towards them because he wanted to return to prison, a court heard.

Homes are included in the plans. Library image.

Plans for a large-scale development off the A120 at Ramsey creating more than 1,000 jobs have been tipped for approval tonight.

An impression of the possible development of the island site with the double bridge over the lock in the foreground.

A road crossing across Ipswich’s wet dock would lead to more traffic and pollution, transport campaigners have said.

Cllr Richard Kirby

Two Labour members of Ipswich Council are stepping down early – creating a couple of by-elections to be held on the same day as the General Election.

Cat chipping event at The Meeting Place Community Centre. Left to right, Ben Gummer, Bizzles, Claire Hale.

Cat owners in Ipswich gathered on Saturday to help protect their pets with a chipping event.

Link Travel had contracts with Suffolk County Council.

The collapse of a Suffolk-based specialist travel company has left dozens of clients needing help with transportation stranded.

East Anglian Group of Marine Artists exhibition at Thompson’s Gallery, in Aldeburgh. A Harbour in the Gulf of Morbihan by Kenneth Denton.

A Suffolk gallery is set to host work by the East Anglian Group of Marine Artists for the second time.

Most read

Most commented

Topic pages