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HMV escapes collapse thanks to Hilco buyout

BusinessNews
by Oluseun Alufa
, 22 Jan 2013News
HMV escapes collapse thanks to Hilco buyout

HMV has been acquired by Hilco’s UK division just a week after first entering administration. The retail restructuring group bought the music vendor’s £176 million net debt from its lenders Lloyds and Royal Bank Scotland – though at a purportedly marked-down price.

The deal lands Hilco with a new addition to its growing HMV portfolio, as it purchased the retail chain’s Canadian arm in 2011.

The debt transfer ensures that HMV does not go the way of Comet, with which it shares Deloitte as an administrator. However, the deal doesn’t necessarily ensure that all of the chain’s 223 stores will remain intact, as inevitable organisational restructuring will likely require sacrifices.

If property is made available, there will be no shortage of bidders, what with fellow administration survivor GAME already indicating interest in store purchases, which might also provide HMV’s 4,000-strong workforce with an additional safety net in the face of staff cuts.

Image credit: Flickr (Gwydion M. Williams

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