Record companies back bid to save some HMV branches

Jan 21, 2013

Record labels would offer preferential terms to keep a high street presence for their products

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THE WORLD'S biggest record labels are backing a rescue offer for HMV by US-based turnaround specialists Hilco, according to the Daily Telegraph.

Sony, Warner Music and Universal Music want a deal to go ahead to provide a shop window for their products on the British high street and avoid being trapped into spiralling price cuts by the likes of Apple's iTunes and Amazon.

If Hilco buys some or all of HMV's stores the labels have indicated they will guarantee easy terms and long lines of credit to the group which acquired HMV's Canadian arm in 2011.

Movie makers Universal Studios, Warner Brothers and 20th Century Fox are also believed to be throwing their weight behind the deal, ensuring supplies of DVDs.

Administrator Deloitte has said it has received well over 50 expressions of interest from groups wishing to make a deal over HMV. Although Deloitte is said to be hopeful of a deal being struck it is likely that only 50 to 100 stores out of HMV's roster of 223 British outlets will remain open.

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