HMV brand saved in £50m deal

The HMV brand has been saved in a deal said to be worth £50m that will see 141 stores kept open.

hmv

Restructuring company Hilco has agreed a deal with administrators Deloitte that will keep the remaining HMV and Fopp branches in business. The agreement will safeguard about 2,600 jobs.

The UK’s major record companies and film studios are said to have given their backing for the deal to ensure they have a high street presence to rival online retailers such as Amazon and download stores such as iTunes, Sky News reported.

Administrators Deloitte were called in to find a buyer for the chain in January after repeated profit warnings and concern it would breach banking covenants. More than 60 stores have been closed to date.

Chances of a deal with Hilco have been likely since it acquired HMV’s debt, thought to total about £176m, soon after administrators were called in.

Hilco will be faced with the challenge of relaunching a chain that has been in decline for years. Sales have been ravaged by online rivals and it is widely seen to have been slow in exploiting the popularity of downloading.

It will also have to appoint a new executive team following the departures of marketing director Mark Hodgkinson and chief executive Trevor Moore in February.

* Story updated at 12.10pm following confirmation from Deloitte. Store and job numbers changed.

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