HMV set to be rescued in £50 million Hilco deal
Collapsed entertainment retailer HMV looks set to be rescued in a £50 million deal.
According to Sky News, specialist restructuring firm Hilco is expected to sign an agreement to acquire around 130 HMV-branded stores and all nine of its Fopp cut-price music outlets.
The deal, which could be signed as early as today, could prevent the loss of up to 2,500 jobs.
HMV’s suppliers, which include major music companies and film studios, have already given the deal their blessing and have agreed new supply terms, Sky News has reported.
Never Miss a Retail Update!The retailer went into administration in January after struggling against tough high street conditions and the rise in internet downloads in recent years.
Hilco already owns HMV Canada and in January acquired HMV’s debt from its bankers. Working with administrators Deloitte, Hilco has been successful in securing new trading agreements with HMV’s principal suppliers to enable the retailer to continue selling new film, music and gaming releases.
In February, Deloitte announced the that 66 of HMV’s 220 shops would close over two months with the loss of nearly 1,000 jobs.
