Hilco takes control of HMV

The music plays on, but Nipper has a new master now. Restructuring specialist Hilco has bought HMV's debt, effectively assuming control of the high street retailer.

by Rebecca Burn-Callander
Last Updated: 19 Aug 2013
Salvation is at hand for HMV’s 223 stores and 4,000 staff. Hilco, the Canadian firm that already owns HMV Canada, has bought the beleaguered retailer’s debt from lenders Lloyds and Royal Bank of Scotland.

It’s a quick and painless way to assume control of HMV, which went into administration last week. And word has it that Hilco got a cracking price on the deal, paying under the odds for HMV’s £176m debt mountain.

Hilco acquired HMV Canada from the HMV parent company back in 2011 for £2m. It was these existing ties with suppliers and Hilco’s inside knowledge of the industry that made it the buyer of choice for the likes of Sony and Universal Music. Interestingly, Deloitte had already appointed Hilco to advise on finding a buyer because of its 'inside knowledge'.

In theory, now that Hilco is to control the HMV brand in the UK and Canada, it will be able to secure more favourable credit terms from said suppliers – and it’s always cheaper to buy in bulk, after all. So it seems that HMV has escaped the death knell. Let’s hope the new business owner manages to strike the right note with consumers in 2013.

Read the full story of the decline and fall of HMV here.



Find this article useful?

Get more great articles like this in your inbox every lunchtime

Upcoming Events

Latest on MT

5 things you didn't know about R&D tax credits

5 things you didn't know about R&D tax credits

Is your business innovating? You could claim back tax on fuel, staff and other costs.

Can you start your own business without quitting your day job?

Can you start your own business without quitting your day job?

Torn between the freedom of the start-up life and the security of the payroll? As a part-time entrepreneur you can have both.

Meet the entrepreneur making credit scores free

Meet the entrepreneur making credit scores free

Former ZAPP CMO Justin Basini has built an ad-funded credit score start-up with more than 2 million users.

Do companies actually believe in gender equality?

Do companies actually believe in gender equality?

Diversity programmes may be great to pad out the CSR page on your website, but be ready to practise what you preach.

Which Olympic sport matches your small business style?

Which Olympic sport matches your small business style?

Sponsored: Are you a target-focused archer or a soaring pole vaulter?

Aldi and Lidl will continue to grow

Aldi and Lidl will continue to grow

UPDATE: The discounters' market share is already expanding at the expense of the Big Four, and economic uncertainty over Brexit will only help them.