Hlico, a restructuring specialist that already owns HMV Canada, has taken effective control of the British branch of the troubled entertainment retailer, which went into administration on 15th January.
BBC News reports that Hilco has brought HMV’s debt from its lenders, Lloyds and RBS. Although the debt was believed to be in the region of £176m, it is thought that Hilco have paid much less due to the retailers current situation.
This move does not mean that Hilco currently owns HMV but clearing their debt does pave the way for them to own the chain outright.
Deloitte, who are handling HMV’s administration, said they would “continue to seek a positive outcome for the business” adding they were working closely with Hilco.
Nick Edwards, the joint administrator said
“Stores continue to trade and at this time we remain hopeful of securing a long-term future for HMV as a going concern,”
Hilco brought HMV Canada from its parent group in 2011, this combined with reported support from industry groups of music labels and film studios, means suppliers are more likely to give a newly owned HMV better credit terms. Simply put, it could mean more competitive prices in the future.
HMV, which has some 223 UK stores and around 4,000 employees, announced on Monday that it would be accepting gift cards again after Deloitte reassessed the stores financial situation.