Since going into administration earlier this month, HMV has been very quiet on the social media front, up until Thursday, January 31st, 2013.
Tweets made from the HMV Twitter account by what appears to be an employee losing their job, used the hashtag “#hmvXFactorFiring” to describe how “over 60” employees “who love the brand” were being fired.
However, the tweets were quickly deleted shortly after they were posted.
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.
Update: HMV have now confirmed earlier speculation that it is to appoint Deloitte as an administrator. The company is to suspend the trading of its shares on the London Stock Exchange.
HMV explained that it is the intention of the administrators “to continue to trade whilst they seek a purchaser for the business”.
The blue cross sale currently taking place online and at over 230 HMV stores across the UK and Ireland, is not part of an effort to raise funds for their upcoming debt deadlines, according to the retailer.
The news of HMVs troubles have been on the grapevine for sometime, with the HMV Group forced to sell Waterstone’s and their Canadian businesses within the last 12 months. However the firms troubles have become more evident following reports that the British-based retailer is to receive support from banks.
HMVs help comes in the form of an amended covenant package on its borrowings from the joint investors, the banks have also waived covenant test and will be re-tested when the retail group has more room for manoeuvre. For those who don’t work in finance, this means the banks have waived a series of tests on HMVs loans that will allow the group to continuing paying its debts.