Hilco saves HMV

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£50m deal could see the struggling retailer brought back from the brink.

HMV Canda owner Hilco has reportedly stepped up to save the UK entertainment retailer in a deal worth £50 million.

According to the report by Sky News, the deal will preserve 2,500 jobs as well as 141 HMV branches throughout the UK, additionally, the deal will salvage the twice-troubled music brand Fopp.

"We hope to replicate some of the success we have had in the Canadian market with the HMV Canada business which we acquired almost two years ago and which is now trading strongly,” Paul McGowan, Hilco's CEO commented.

"The structural differences in the markets and the higher level of competition in the UK will prove additional challenges for the UK business but we believe it has a successful future ahead of it."

Earlier rumours suggested that GAME and Asda were interested in snapping up premium high street branches or the company's well recognised brand, but Hilco stayed one step ahead, having already secured £176 million of the company's debts.

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