Hilco Acquires HMV Debt – First Step To A Buyout

We mentioned yesterday that it seemed Hilco were interested in buying the embattled entertainment retailer. It was heavily rumoured, not only that they were interested but that they were the favourites of many of the publishers and distributors that deal with HMV.

Now, the Financial Times (sub required) reports that Hilco has acquired the company’s debts – believed to be approximately £200 million – to Lloyds and RBS. That gives the administrators a little more time to finalise the details of a deal with Hilco to buy up the chain properly.

The deal isn’t finalised just yet but chances are it shouldn’t be too far away. Hopefully Hilco, who bought the Canadian arm of HMV a couple of years ago, will be able to save as many branches and as many jobs as possible.

Via MCV.

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3 Comments

  1. Control of the debt is control of what’s left of the company, they obviously won’t have paid full price for that debt & would have got a probably significant discount.

    They can now decide to wind down the company & make a profit on buying that debt by asset stripping, or they could try & make a go of it as a retailer.

    If they do the latter, they’re now in a strongish position to negotiate more favourable terms with suppliers, they’ll obviously get rid of weak stores & their staff.

    Whatever’s left will no doubt be the new HMV, but it will be temporary unless they invest heavily in online.

  2. This is good news.

  3. They have the backing of some major content providers. Need to make online work a lot more for them.

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