HMV: Hilco Throws Lifeline To Retail Chain
Retail restructuring group Hilco UK has acquired the debt of HMV, effectively giving it control of the administrator-managed entertainment chain.
The debt purchase has been taken from the books of the struggling retail chain's lenders, Royal Bank of Scotland and Lloyds.
HMV's net debt last October stood at £176m.
During the debt negotiations HMV was set to remain under control of the administrators from Deloitte and not transfer to Hilco.
However Hilco's debt purchase means a route to rescue is now available, and may save thousands of jobs.
Hilco had earlier been appointed to work alongside Deloitte to assist it in running the business.
Sky's City Editor Mark Kleinman first revealed details of gift cards and vouchers being honoured again by HMV, following a public outcry.
Deloitte announced the U-turn on Monday that HMV would resume selling vouchers cards to customers.
Controversy had surrounded the administrators' decision to ban redemptions of vouchers when Deloitte was appointed on January 14, despite the fact that they had been on sale until hours before the chain's collapse.
HMV's lifeline comes amid shudders on the high street as successive chains face closure.
This month alone, Jessops, Blockbuster and HMV have all called in administrators.
Late last year electricals chain Comet also announced it was calling in the accountants.
The hardest hit firms have been those that lack price competitiveness to online retailers.
Blockbuster has also struggled to offer alternatives to the convenience of online streaming of video.
what do you think?
Sounds good,hopefully the jobs will be saved
Glad there is hope HMV need to think of new ideas ,go back to 10 min play booths give local singers and bands a stage to start out every Saturday, not needing that Ogre Simon Cowell with his PAP music and mostly one hit wonders .
Agreed. Cowell is the worst influence in the history of popular in this country. Anything that stops him is welcome.
I hope that hilco can save them, but things at HMV have to change big time for them to survive under the new owners. I'm also glad to see that the administrators have allowed those who bought or were given gift cards to use them. The management knew that they were in trouble months ago and took peoples money for gift cards under false pretences or deception and faced a very big legal action.
Think they will change. Back to basics I would think