Restructuring specialist Hilco has acquired much of HMV’s debt, essentially giving it control of the flagging retailer, according to the Financial Times.
Hilco was already in discussions with administrators Deloitte about buying some of the HMV company, which went into administration last week after directors failed to renegotiate terms with the firm’s money lenders. According to the FT, Hilco has now acquired HMV’s debts from Lloyds and Royal Bank of Scotland. Although Hilco has not yet bought HMV itself, one source told the FT that the debt move “takes the panic out of the situation”.
In a statement, Hilco said: “Hilco UK confirms that it has acquired HMV’s debt from the Group’s lenders. It has not bought the business itself. 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”.
As previously reported, the major music and movie companies are thought to back Hilco’s bid to take ownership of HMV UK, with the entertainment companies reckoning its plans will result in the happiest outcome for the entertainment retail firm. Hilco already owns HMV Canada.
UPDATE 1pm, 22 Jan 2013: Added Hilco statement