HMV store in Scunthorpe is taken over by Hilco
Scunthorpe's HMV store has been taken over by restructuring specialist Hilco after it snapped up the music and DVD retailer.
Hilco, which already owns HMV Canada, has bought the debt of HMV from the group's lenders, Lloyds and Royal Bank of Scotland.
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The HMV store in Scunthorpe
The debt deal gives Hilco effective control of HMV which fell into administration last Tuesday.
HMV has been hit by competition from online rivals, supermarkets, and illegal music and film downloads.
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The Scunthorpe store, located in The Parishes, was one of 238 facing potential closure if a buyer was not found by administrators Deloitte LLP
HMV's estimated debt was around £176m, but Hilco is believed to have paid much less than this to acquire it because the retail chain is in administration.
Although Hilco does not yet officially own HMV, the debt deal gives it effective control of the music and DVD chain.
Hilco bought out HMV Canada from parent HMV group in 2011 for £2m, and this history means suppliers are likely to give a Hilco-owned HMV in the UK more favourable credit terms.
In Canada, Hilco said the support of HMV's key suppliers had been of "critical importance" to the business's performance.
HMV has a workforce of about 4,000.
Hilco was not immediately available to comment.
9 Comments
by Paranoid61
Wednesday, January 23 2013, 11:37AM
“afoster . As you say shopping on line can be cheaper . A trick HMV are missing is by not pointing out downloads have no re sale value . Buy a hard copy CEX many others will give you something for it ,but I don't know anyone who will pay extra for a digital down load .”
by afoster
Wednesday, January 23 2013, 10:52AM
“with hmv having such large dedts how can any of there shops be making a profit. i personally dont shop there as i shop online as its cheaper.”
by Paranoid61
Wednesday, January 23 2013, 10:29AM
“DFlated come on have you been in HMV lately ? It will be GPW before you know it as said by previous posts HIlco will cut and run .”
by Hazzers
Tuesday, January 22 2013, 10:21PM
“According to @thehamst on twitter Deloitte haven't struck a deal with music labels to stock new album releases at HMV yet and asks how this will affect the charts & more imrotantly, how it will affect HMV.”
by plasticscouse
Tuesday, January 22 2013, 9:25PM
“Lets hope in this current climate, that it means some jobs saved.”
by buffering
Tuesday, January 22 2013, 6:38PM
“by englander61
"They will only keep the ones open that are making a good profit, So don't hold your breath ."
................................................
Have you automatically made the assumption that the Scunthorpe branch doesn't hit all their targets!!”
by englander61
Tuesday, January 22 2013, 3:37PM
“They will only keep the ones open that are making a good profit, So don't hold your breath .”
by MoragMcShin
Tuesday, January 22 2013, 2:03PM
“You really think they won't be closing branches???
"Hilco was not immediately available to comment." Oh really? I can't think why! What to do... deal with the new acquisition or talk to a local rag.... hmm...”
by DFlated
Tuesday, January 22 2013, 12:55PM
“Saved us from another Poundworld or it becoming a Greggs.”