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HMV in talks with Hilco for £50m acquisition


Entertainment retailer HMV is in talks with restructuring specialists Hilco which may see the business saved from administration with a £50 million deal, it is understood.

Some 130 stores and thousands of staff are expected to be saved from closure and redundancy as Hilco seeks to take over the running of the units within three weeks, according to The Sun.

In January, the private equity and restructuring firm acquired HMV’s debt from lenders after it was appointed to advise administrators Deloitte and the newspaper reported that a deal must be struck promptly prior to the arrival of the retailer’s quarterly rent bill at the end of this month.

A source told the newspaper: “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.”

Earlier this week, supermarket Morrisons announced its acquisition of six former HMV stores with plans to convert these to Morrisons M Local stores in a bid to extend the reach of its convenience offer.

Hilco UK bought HMV Group’s Canadian business in June 2011 for a total cash consideration of £2 million in a bid to boost sales at the struggling retailer.

Published on Friday 01 March by Editorial Assistant

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