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Bankrupt retailer HMV finds buyer

Source : IANS
Last Updated: Wed, Jan 23, 2013 08:00 hrs

London, Jan 23 (IANS) Bankrupt British CD and DVD retailer HMV has its debt purchased by restructuring specialist Hilco, easing concerns that the star retailer would disappear from high streets.

HMV moved into administration Jan 14, after not getting loans from banks with its heavy debt and bad performance, reported Xinhua.

The white knight Hilco, which already purchased HMV Canada in 2011, has bought HMV's debt from the latter's lenders, Lloyds Banking Group and the Royal Bank of Scotland. The move paves way for Hilco to take full control of HMV.

"Hilco believes there to be a viable underlying HMV business and will now be working closely with Deloitte, who, as administrators, are reviewing the business to determine future options," the company said in a statement.

"Stores continue to trade and at this time we remain hopeful of securing a long-term future for HMV," said Nick Edwards, HMV's joint administrator at Deloitte.

The 92-year-old HMV has been hit by competition from online rivals, supermarkets, and illegal music and film downloads.

It is the last nationwide music products retailer in Britain, with 223 stores and about 4,000 staff members. It also has stores in Iceland, Hong Kong and Singapore.

Earlier reports said about 50 organizations or rich individuals expressed interest in buying the entire business or part of HMV, including industry leaders Universal Music and Sony.




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