Partly Cloudy

Partly Cloudy

max temp: 16°C

min temp: 11°C

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.

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

0 comments

A Martlesham man is angry after a booked trip on a steam train up Snowdon was cancelled due to an obese family taking up all the room in his carriage.

A 170-tonne electricity transformer the size of a bungalow is being transported along the A12 in Suffolk on Saturday.

Chinese backers yesterday signed important financial agreements connected to the construction of Suffolk’s yet-to-be-approved Sizewell C nuclear power station.

A 15-year-old girl missing from Ipswich has been found, according to Suffolk police officers.

A 32-year-old autistic woman from Ipswich has hosted a Macmillan coffee morning in memory of her mother, who died of cancer two years ago.

And depending how significant the prize, or the emotional attachment to it, their fates can range from living out their days in a dusty draw to taking pride of place on your (or your parent’s) mantelpiece.

Police are appealing for witnesses and information after a nine-year-old girl reported being approached by two men on bicycles in Ipswich.

Police stopped a driver on the A14 this afternoon near Needham Market who was going at 107mph.

Members of a Suffolk-based fitness team have raised more than £7,000 for Ipswich Hospital’s neonatal and paediatric wards after completing the Three Peaks Challenge in just 22 hours.

Opened up in 1938, Broomhill Pool was, for decades, one of the most popular attractions in Ipswich.

Most read

Most commented

HOT JOBS

Show Job Lists

Topic pages

Streetlife

Newsletter Sign Up

MyDate24 MyPhotos24