Sunday, March 3, 2013

HMV thrown lifeline as Hilco prepares £50m bid to acquire it

HMV has been thrown a lifeline after restructuring firm Hilco entered into talks to buy the business out of administration in a £50m deal.

Hilco – which acquired HMV’s debt after it collapsed, leaving it in the driving seat – wants to take on 130 stores, which would save thousands of staff, according to The Sun. It aims to conclude a deal within three weeks.

A second party is vying with Hilco to acquire the business, it is thought.

Sources told the newspaper that a deal had to be struck before the end of March, when HMV’s quarterly rent bill falls.

One source said: “Hilco is now vying with one other bidder and the suppliers are on side. But it’s all down to the landlords — and about a quarter of them are refusing to budge.”

Hilco, which already runs HMV in Canada, has, in partnership with administrator Deloitte, negotiated with music labels to secure new releases for HMV’s UK stores.

Deloitte yesterday sold off HMV’s Asian stores and has already earmarked 103 of HMV’s 220 UK stores for closure.

Share this article

Connect with Retail Week

From store level to board room, Retail Week Knowledge Bank analyses company strategy, predicts intentions and details vital financial records across every retail sector

This entry passed through the Full-Text RSS service — if this is your content and you're reading it on someone else's site, please read the FAQ at Five Filters recommends: Eyes Like Blank Discs - The Guardian's Steven Poole On George Orwell's Politics And The English Language.

This post was made using the Auto Blogging Software from This line will not appear when posts are made after activating the software to full version.

No comments:

Post a Comment