News

HMV poised to sign a £50 million rescue package

HMV poised to sign a £50 million rescue package

HMV finally looks set to be rescued in a £50 million deal that will preserve 2,500 jobs.

Hilco, the specialist restructuring firm, is poised to sign a binding agreement to secure the chain's future, which will acquire around 130 HMV-branded stores and nine Fopp outlets, reports The Guardian. It's thought the deal could signed as soon as today (April 5).

The firm, which owns HMV Canada, was the frontrunner to become the new owner of HMV soon after Deloitte was appointed as administrator at the end of January. At the time, Hilco bought HMV's £176m of debt for a reported £40m. The chain is now expected to be run by a combination of current HMV and newly-appointed Hilco executives.

Major music labels and film studios are also understood to have backed the deal and have agreed new supply terms with HMV. Hilco also has plans to re-establish the brand in Ireland by reopening a store on Dublin's Henry Street. The retailer's 16 outlets in the country were closed three months ago.

Last month, the total number of job losses at HMV was reported as coming up to 1,500, and the number of stores marked for closure stands at 103. It came after administrators announced that an additional 37 stores would close, resulting in the loss of 464 jobs.


Newsletter


Editor's Letter

The 35th Uncut Playlist Of 2014


Weird serendipities aplenty this week: versions of "O, Death" on two albums I downloaded one after another, by Mike & Cara Gangloff and Bessie Jones; dovetailing into Sea Island overlap between Jones and Loscil. It makes for a nice blurring between time and genre with, say, the Gangloffs...