HMV in talks with Hilco regarding £50 million acquisition deal
HMV is understood to be in talks with restructuring specialists Hilco regarding a £50 million deal to save the collapsed entertainment retailer.
The Sun has reported that Hilco could take on 130 stores, saving thousands of jobs. According to the newspaper Hilco hopes to complete the deal within three weeks.
Sources told The Sun that a deal had to be concluded before the end of March when HMV will be hit with a quarterly rent bill.
A source said: "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."
HMV went into administration in January after struggling against tough high street conditions and the rise in internet downloads in recent years.
Hilco already owns HMV Canada and in January acquired HMV’s debt from its bankers, effectively giving it control of the business. Working with administrators Deloitte, Hilco has been successful in securing new trading agreements with HMV’s principal suppliers to enable the retailer to continue selling new film, music and gaming releases.
Deloitte has already announced the closure of 103 of HMV’s 220 UK stores and yesterday sold its Hong Kong and Singapore stores to AID Partners Capital.
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