Wednesday, February 20, 2019

HMV and Blockbuster owed debts of £490m


Ailing retailers HMV and Blockbuster owed nearly £490 million in debt between them when they collapsed into administration at the start of the year, it is understood.

Administrators Deloitte revealed that entertainment retailer HMV owed some £347 million of debt when it called in restructuring specialists in January, The Sunday Telegraph reported, including £237 million to unsecured creditors which is set to go unpaid.

Blockbuster owed £139 million to creditors and suppliers at the time of its administration, though is likely to prove more profitable for unsecured creditors with a dividend of nine pence expected should the retailer be sold as a going concern.

Last week, grocer Asda confirmed that it is in talks with Deloitte to buy HMV, though no buyer has yet been found for the business, with restructuring specialists Hilco also keen to acquire some or all of the brand.

New figures outlining the extent of the companies‘ debts have been published in separate statements of administrator‘s proposals sent to creditors in recent days while previously unpublished numbers have given insight into the extent of HMV‘s financial woes.

In the six months to October 27th 2012, HMV‘s pre-tax loss stood at £37.3 million on sales of £286.6 million, according to the newspaper, while the retailer reported a loss of £38.6 million on sales of £873.1 million.