Retail re-structuring group Hilco UK have taken effective control of HMV.
The dramatic events surrounding historic music brand HMV appear to have taken another turn. Last week the chain was plunged into administration, after several years of attempting to control spiralling debt.
More than 4000 jobs were put at risk, with some predicting the death knell for physical music on the high street. Today, though, retail re-structuring group Hilco UK appear to have thrown HMV a lifeline. (via BBC)
Specialists in delivering solutions to struggling businesses, Hilco UK were responsible for buying out HMV Canada back in 2011. Now it seems that they have taken effective control of the entire firm after striking a deal to take on board the debt of HMV from the group's lenders, Lloyds and Royal Bank of Scotland. Although Hilco UK do not officially own HMV, the deal provides some measure of stability to the struggling chain.
In Canada, Hilco said the support of HMV's key suppliers had been of "critical importance" to the survival of the business. The move will no doubt be greeted favourably in the music industry, with The Sunday Times previously reporting that major labels such as Universal and Warner Brothers had been preparing a deal based on favourable terms to help maintain HMV's stability.
More on this as it comes in.