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Future looking bright for HMV

JPCT 15-01-13 S13030218X HMV, West Street, Horsham -photo by Steve Cobb

JPCT 15-01-13 S13030218X HMV, West Street, Horsham -photo by Steve Cobb

The future of the Horsham and Crawley HMV stores is looking more secure after restructuring specialist Hilco took control of the company today (Tuesday January 22).

Hilco UK confirms that it has acquired HMV’s debt from the Group’s lenders making it more likely to survive administration. It has not bought the business itself.

A spokesman said: “Hilco believes there to be a viable underlying HMV business and will now be working closely with Deloitte who, as Administrators, are reviewing the business to determine future options.”

Hilco bought out HMV Canada from parent HMV group in 2011 for £2m, and this history means suppliers are likely to give a Hilco-owned HMV in the UK more favourable credit terms.

In Canada, Hilco said the support of HMV’s key suppliers had been of “critical importance” to the business’s performance.

HMV has 223 UK stores in total, and a workforce of about 4,000.

Deloitte was appointed as administrator and was thought to have received “well over 50” expressions of interest from potential bidders for the 92-year-old entertainment retailer, amid hopes of retaining between 50 and 100 of the high street stores. Yesterday it said vouchers would now be able to be redeemed at the stores across the country.

Deloitte was not currently able to comment.

 

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