Hilco acquires HMV debt of 176 million

Move effectively puts restructuring company in charge of retailer's fate

Retail restructuring group Hilco has acquired the debt of UK retailer HMV, which went into administration last week with £176 million of unsatisfied debts.

Lloyds and RBS, HMV's lenders, are thought to have agreed the deal with the specialist outfit - also involved with the attempted rescue of Hostess and other large US business - this week, but neither company has yet to officially confirm the details of the arrangement.

The move puts Hilco, which was already considered by many to be the favoured buyer for the group, into a very strong position regarding decision-making on the chain's future, a Financial Times report suggests.

Hilco also owns HMV Canada and had already been appointed as advisers to administrator Deloitte, with a remit of maintaining HMV as a continuing business entity throughout the administration process.

Hilco's acquisition of the debt is seen by those close to the deal as a positive move which increases the chance of HMV emerging from administration.

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Latest comments (5)

Peter Dwyer Games Designer/Developer 9 years ago
Emerging but, hopefully with a more online direction. Keeping a few stores as largely flagship store fronts instead of the bricks and mortar centric business it is now. HMV never took online seriously in the past. Anyone who tried to get something from their online store will know what I mean. It was like a maze with no clear entrance or exit.
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Fran Mulhern , Recruit3D9 years ago
Good luck to them. And what Peter said, their online store is horrible. It says Hilco own HMV Canada. I've been into the one in Montreal - depressingly, it seemed even more chaotic than HMV here. Hope they sort it though.
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Hugo Trepanier Senior Game Designer, Ludia9 years ago
Several years back HMV Canada used to have a really smart online shopping experience before they closed it down. They even had free shipping on most orders, fast delivery, etc. They later returned with their current sorry excuse of a web shop. I never understood that move because I used to order all my stuff from them, and then had to switch to Amazon and other online retailers because their new experience was so deficient compared to the original. Nowadays, I don't even consult HMV's site when doing simple price checks.

I rarely miss the old days when I would stroll into an HMV store for hours looking at stuff because now it's much easier to do it digitally. However, I still buy all my music on CD and physical books because I enjoy the tangible aspect of things. I can't imagine the young iGeneration feeling the same about it though...
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Liam Farrell9 years ago
But what happens to Fopp?
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Morville O'Driscoll Blogger & Critic 9 years ago
Reading the broadsheets, I don't think this is a good thing:
The business has faced criticism in the past for asset stripping distressed businesses and may not necessarily prolong HMV's future.

In 2009 it bought bookseller Borders. The company's five biggest stores were sold and less than five months later the business disappeared from the high street with the loss of more than 1,000 jobs.

It has also been responsible for the unwinding of Allders and helped run the closing down sales at Woolworths.
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