HMV: Hilco acquires debt to take control

Hilco has taken effective control of HMV after acquiring the retailer’s debt.

The restructuring specialist, which purchased HMV Canada in 2011, bought HMV's estimated £176 million debt from the group's lenders, Lloyds and Royal Bank of Scotland, although it is thought to have paid much less than the face value because the retail chain is in administration, the BBC reports.

While it doesn’t yet officially own HMV, the move will allow Hilco to work with administrator Deloitte to find the best way to take the business forward, and hopefully safeguard a workforce of about 4,000. HMV has today also begun accepting gift vouchers in stores again after suspending their use last week.

In the region of 50 parties are said to have expressed an interest in HMV to Deloitte, with retailer GAME keen to buy 45 HMV stores, according to the Financial Times.

1 comment

  • DICEs - January 22, 2013 3:35 p.m.

    It's nice to see that there may be a light at the end of the tunnel for HMV. But they do need to drastically change the way they sell games. I mainly go to HMV to buy movies as they have some very good offers whereas their games are usually much more expensive than anywhere else. Also are GAME really in a position to buy 45 stores considering their recent history

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