Music retail store HMV have just had their debt bought by ‘restructuring specialist’, Hilco. The debt, rumoured to be up to £176 million, has to be purchased in order for any company to take full control of HMV. However, due to the high street retailer falling into administration last week, Hilco have purchased the debt for just £40 million.
Hilco made the following statement regarding its decision and involvement, “Hilco UK confirms that it has acquired HMV’s debt from the Group’s lenders. It has not bought the business itself. Hilco believes there to be a viable underlying HMV business and will now be working closely with Deloitte who, as Administrators, are reviewing the business to determine future options.”
In related news, a number of the nation’s supermarkets are allegedly looking to convert a large number of HMV outlets into convenience stores. NME have reported (here) that Morrisons, Tesco and Sainsbury’s have all shown interest in purchasing up to half HMV‘s 230 stores.