This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/news/business-21141209
The article has changed 4 times. There is an RSS feed of changes available.
Version 0 | Version 1 |
---|---|
HMV: Restructuring specialist Hilco takes control of retailer | HMV: Restructuring specialist Hilco takes control of retailer |
(35 minutes later) | |
Restructuring specialist Hilco has taken effective control of music and DVD retailer HMV. | Restructuring specialist Hilco has taken effective control of music and DVD retailer HMV. |
Hilco, which already owns HMV Canada, has bought the debt of HMV from the group's lenders, Lloyds and Royal Bank of Scotland. | Hilco, which already owns HMV Canada, has bought the debt of HMV from the group's lenders, Lloyds and Royal Bank of Scotland. |
The debt deal gives Hilco effective control of HMV, which fell into administration last week. | |
HMV has been hit by competition from online rivals, supermarkets, and illegal music and film downloads. | HMV has been hit by competition from online rivals, supermarkets, and illegal music and film downloads. |
HMV's estimated debt was about £176m, but Hilco is believed to have paid much less than this to acquire it because the retail chain is in administration. | |
Although Hilco does not yet officially own HMV, the debt deal gives it effective control of the music and DVD chain. | |
An industry group of music labels and film studios, including Universal Music and Sony, were reported on Monday to favour a buyout of HMV by Hilco. | |
Hilco bought out HMV Canada from parent HMV group in 2011 for £2m, and this history means suppliers are likely to give a Hilco-owned HMV in the UK more favourable credit terms. | |
In Canada, Hilco said the support of HMV's key suppliers had been of "critical importance" to the business's performance. | |
HMV has 223 UK stores in total, and a workforce of about 4,000. | |
Hilco was not immediately available to comment. | |
On Monday, the administrators for HMV said that the retail chain would start accepting gift vouchers in stores from Tuesday. | |
Deloitte, which had previously said that gift cards could not be redeemed in stores, said it had made the change after assessing HMV's financial position. |