HMV saved from closure by £50m rescue deal with Hilco
Plan to save stricken music chain, backed by entertainment industry, could save 2,500 jobs
EMBATTLED music chain HMV has been bought by restructuring firm Hilco in a deal thought to be worth £50m, reports Sky News.
The firm acquired 141 stores and from the business, which collapsed in January, including 25 marked for closure by administrators Deloitte. The deal will safeguard around 2,500 jobs at the 92-year-old retailer.
The company has been considered a favourite to take over the beleaguered business after buying HMV's debt days after the high street music store went into administration in January.
Hilco, which is also expected to open a store in Dublin, had turned around HMV's Canadian business after buying it in 2011.
Record companies and film distributors have reportedly agreed new supply terms with HMV and are backing the deal. Labels want it to go ahead smoothly 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.
David Joseph, the chief executive of Universal UK, has previously said he was hoping for HMV to have a "6 Music moment" – similar to the time when artists and fans helped save the BBC radio station from the threat of closure in 2010.
HMV had been struggling for years before going into administration. The rise of digital downloading and success of online firms such as Amazon, as well as competition from supermarkets like Tesco, had destroyed its business model.
The company's rescue deal offers a glimmer of hope to the beleaguered retail sector and comes after two other brands which collapsed this year were also bought out.
Dragons' Den star and entrepreneur Peter Jones re-launched a down-sized Jessops camera chain last month and Sports Direct took over fashion chain Republic in March.