Wednesday 16 January 2013, 10:50 | By Chris Cooke
Potential bidders come forward for HMV
Retail restructuring group Hilco was most firmly linked to the HMV business yesterday, as possible bidders were mooted for the flagging entertainment retailer after management at the firm suspended its shares and put the company into administration.
Administrators insisted yesterday that they were looking for a buyer for HMV in a bid to rescue the 240 store chain and the jobs of its 4000+ employees. However, it seems unlikely that a buyer will emerge interested in taking on the HMV Group in its current form, though the brand remains strong and bidders may be interested in acquiring the company’s better performing stores.
Hilco, which already owns HMV Canada, is definitely interested in some of the UK business, according to the Financial Times. Other potential bidders include Endless, a private equity group that targets “distressed companies” and Oakley Capital, the investment firm best known in media circles for its stake in Time Out.
HMV’s newish CEO Trevor Moore told reporters yesterday he was “convinced” HMV had a future, adding that both he and his Finance Director Ian Kenyon would be keen to stay with any rescued version of the company. He said: “We are really passionate about developing the plan for this business evolving it moving forward”.
In the main, HMV’s suppliers remain committed to the company, and hopeful a sustainable business can emerge from the administration. Whether that can be achieved, and in what form, depends very much on the current discussions between administrators Deloitte and the investment types most likely to bid.