Hilco to rescue music retailer HMV in 50 million pound deal - report

Thu Apr 4, 2013 11:18pm BST

Shoppers pass an HMV shop in central London, January 15, 2013. REUTERS/Paul Hackett

Shoppers pass an HMV shop in central London, January 15, 2013.

Credit: Reuters/Paul Hackett

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(Reuters) - Restructuring specialist Hilco is set to throw British entertainment retailer HMV a lifeline in a 50 million pound deal that will save 2,500 jobs, Sky News reported.

The deal, which could be struck as soon as Friday, will see HMV emerge from administration, Sky News said on its website, with the chain expected to be run by incumbent HMV executives together with newly-appointed Hilco executives.

As part of the deal, Hilco will acquire about 130 HMV stores and all nine outlets operating under the Fopp brand, Sky News said.

Major music companies and film studios, as well as HMV's landlords are understood to be backing the deal, Sky News said.

Hilco has long been seen as the frontrunner to take control of HMV and the restructuring specialist tightened its grip on the company in January, buying up the 92-year-old group's debt soon after it sought creditor protection.

It has also been appointed to help administrators Deloitte run the business during the administration.

HMV's business of selling CDs, DVDs and video games has struggled in declining markets and amid increasing competition from supermarkets and online retailers such as Amazon.Com Inc.

Hilco and Deloitte could not be reached for comment outside regular business hours.

(Reporting by Abhishek Takle in Bangalore; editing by Andrew Hay)

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