HMV Saved in UK After Hilco Buyout
Published Apr 05, 2013A couple of years ago, restructuring specialist Hilco bought out HMV Canada, and now it has done the same for HMV in the UK. This comes as good news, since the move has saved a reported 141 stores and 2,500 jobs.
HMV went into administration back in January, when the company announced that it would cease trading on the stock market and Deloitte was appointed as administrator. This put all of the company's UK stores in jeopardy.
Hilco previously bought HMV's debt back in January, and now it has officially acquired control of the company. The deal is reportedly worth £50 million ($77.3 million Canadian). This latest incarnation of the music retailer will be run by HMV executives, along with newly appointed Hilco bosses.
Hilco exec Ian Topping said in a statement, "This is an exciting investment for the Hilco team and we will be able to use some of the developments already progressed in Canada to restore HMV to health. We intend to reverse the earlier decisions to sell tablets and other devices in the stores and to reclaim the space for an enhanced music and visual range. The reaction of the British public to the administration of HMV shows a strong desire for the business to continue to trade and we hope to play a constructive part in delivering that."
This news comes just two months after HMV announced plans to close a number of UK stores.