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HMV rescue plan imminent as Hilco ramps up take over discussions - report

RHIAN JONES
HMV

A deal to rescue HMV could be struck within ten days as Hilco ramps up discussions to purchase the High Street chain.

A purchase would need to be approved by other stakeholders in HMV – namely the suppliers and landlords – and record labels and film studios. The talks could lead to some of the suppliers taking a stake in the new HMV.

The retail restructuring group was said to be keen to conclude a deal this weekend gone - ahead of a second-quarter rent bill which is due today (Monday, March 25).

The entertainment industry is keen for the brand to be saved as research has estimated that if HMV disappeared from the High Street, entertainment retail sales of £300m would be lost – over 9% of the total entertainment market – as a result of fewer sales from browsing and buying on impulse.

It is understood that Hilco is looking to buy around 120 HMV shops and could reverse a number of store closures that have happened in recent weeks. Hilco is the only party still in discussions with administrators Deloitte about a deal.

HMV was called into administration in January, with a reported secured debt of £110.3m. Reports have suggested that Hilco's formal offer for the company is in the region of £50m.

Source: FT & The Telegraph

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Tags: HMV, Hilco

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