HMV debt taken on by Hilco

HMV Signage

Owners of HMV Canada confirm reports that they have snapped up the retailer’s debt.

Following mounting speculation over the fate of wounded retailer HMV, Hilco has swooped in to save the chain by snapping up its debt.

The company, which operates HMV Canda, confirmed reports that it has reached a deal with administrators Deloitte.

“Hilco UK confirms that it has acquired HMV’s debt from the Group’s lenders. It has not bought the business itself,” explained the company.

It continued: “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.”

Hilco’s move to secure the company’s debt may have been the catalyst that allowed HMV to continue honouring its gift cards, to the relief of embittered customers.

This has the potential to upset the plans of Game, the videogames retailer, which had announced its interest in acquiring stores in strategic locations.

HMV’s new investor is the current owner of HMV Canada, which it recently reported as having a successful Chirstmas, with sales topping CAD65 million.

“The Canadian consumer still wants CDs and DVDs and expects us to deliver them while adding value to their music experience,” commented Nick Williams, HMV Canada’s President and CEO.

Sales during the holiday period represented a growth of 1.1 per cent year-on-year, while the 2012’s total sales hit CAD270 million.

 

image: © yoppy

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