Restructuring firm Hilco buys HMV debt

 

Hopes over the future of collapsed music chain HMV were raised today after its debt was bought by the restructuring business behind HMV Canada.

Hilco UK has taken on the debt from lenders Lloyds and Royal Bank of Scotland in a move effectively giving it control of the business.

It comes after Hilco was appointed adviser to HMV's administrator Deloitte yesterday.

The move should give administrators more time to secure the future of the 92-year-old company and will bring some certainty for the business.

Entertainment giants, including Universal Music, Warner Music and Sony, are said to be in favour of a buyout by Hilco. The suppliers are reportedly planning to offer HMV suitors generous credit terms and cut the price of CDs and DVDs to help keep HMV's presence on the high street.

Hilco, which is best known for its recent rescue of furnishings group Habitat, has been linked to the company since it hit the wall last week, putting more than 4,120 jobs and 223 stores at risk.

Deloitte said last week it had received well over 50 expressions of interest from parties including other retailers, private equity firms and wealthy individuals.

Game confirmed it was among 50 potential suitors circling the collapsed music entertainment business, and private equity veteran Jon Moulton was also linked through his Better Capital firm.

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

Hilco UK, which also owns the Denby pottery firm, was founded out of a partnership between UK management and the distressed retail and advisory firm Hilco Group in the US.

HMV sold its 121 stores in Canada to Hilco for £2 million in 2011, which at the time allowed the company to secure a new £220 million borrowing facility.

The news comes after HMV's administrators yesterday bowed to public pressure and said they will accept gift cards at the collapsed music chain.

Despite HMV continuing to sell gift cards until the day before the music chain collapsed, administrators Deloitte stopped accepting them once appointed to the business last week.

Hilco and Deloitte declined to comment.

PA

Start your day with The Independent, sign up for daily news emails
ebooks
ebooksA special investigation by Andy McSmith
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

SThree: HR Benefits Manager

£40000 - £50000 per annum + pro rata: SThree: SThree Group have been well esta...

Recruitment Genius: Office Manager / Financial Services

£30000 - £37000 per annum: Recruitment Genius: Established in 1999, a highly r...

Jemma Gent: Year End Accountant

£250-£300 Day Rate: Jemma Gent: Are you a qualified accountant with strong exp...

Jemma Gent: Management Accountant

£230 - £260 Day Rate: Jemma Gent: Do you want to stamp your footprint in histo...

Day In a Page

HIV pill: Scientists hail discovery of 'game-changer' that cuts the risk of infection among gay men by 86%

Scientists hail daily pill that protects against HIV infection

Breakthrough in battle against global scourge – but will the NHS pay for it?
How we must adjust our lifestyles to nature: Welcome to the 'Anthropocene', the human epoch

Time to play God

Welcome to the 'Anthropocene', the human epoch where we may need to redefine nature itself
MacGyver returns, but with a difference: Handyman hero of classic 1980s TV series to be recast as a woman

MacGyver returns, but with a difference

Handyman hero of classic 1980s TV series to be recast as a woman
Tunnel renaissance: Why cities are hiding roads down in the ground

Tunnel renaissance

Why cities are hiding roads underground
'Backstreet Boys - Show 'Em What You're Made Of': An affectionate look at five middle-aged men

Boys to men

The Backstreet Boys might be middle-aged, married and have dodgy knees, but a heartfelt documentary reveals they’re not going gently into pop’s good night
Crufts 2015: Should foreign dogs be allowed to compete?

Crufts 2015

Should foreign dogs be allowed to compete?
10 best projectors

How to make your home cinema more cinematic: 10 best projectors

Want to recreate the big-screen experience in your sitting room? IndyBest sizes up gadgets to form your film-watching
Manchester City 1 Barcelona 2 player ratings: Luis Suarez? Lionel Messi? Joe Hart? Who was the star man?

Manchester City vs Barcelona player ratings

Luis Suarez? Lionel Messi? Joe Hart? Who was the star man at the Etihad?
Arsenal vs Monaco: Monaco - the making of Gunners' manager Arsene Wenger

Monaco: the making of Wenger

Jack Pitt-Brooke speaks to former players and learns the Frenchman’s man-management has always been one of his best skills
Cricket World Cup 2015: Chris Gayle - the West Indies' enigma lives up to his reputation

Chris Gayle: The West Indies' enigma

Some said the game's eternal rebel was washed up. As ever, he proved he writes the scripts by producing a blistering World Cup innings
In Ukraine a dark world of hybrid warfare and murky loyalties prevails

In Ukraine a dark world of hybrid warfare

This war in the shadows has been going on since the fall of Mr Yanukovych
'Birdman' and 'Bullets Over Broadway': Homage or plagiarism?

Homage or plagiarism?

'Birdman' shares much DNA with Woody Allen's 'Bullets Over Broadway'
Broadchurch ends as damp squib not even David Tennant can revive

A damp squib not even David Tennant can revive

Broadchurch, Series 2 finale, review
A Koi carp breeding pond, wall-mounted iPads and a bathroom with a 'wellness' shower: inside the mansion of Germany's 'Bishop of Bling'

Inside the mansion of Germany's 'Bishop of Bling'

A Koi carp breeding pond, wall-mounted iPads and a bathroom with a 'wellness' shower