HMV Canada Owner Buys HMV UK’s Debts

HMV Canada owner Hilco has picked up the tab for the U.K.-based HMV retail chain, The Financial Times reports (subscription required to view). Hilco has purchased the debt that HMV UK owed to Lloyds bank and Royal Bank of Scotland, which is estimated to be around £176 million. Many speculate that Hilco paid far less than the estimated debt that HMV went into administration for.

The UK retailer went into administration earlier this month and financial services firm Deloitte was put in control of the chain. The administrator for HMV was looking for a buyer for the company while its stores remained open for business. While early reports had indicated that UK video game retailer GAME was interested in buying the company's store in locations where it didn't already have a presence, it turned out that the deal was (apparently) not something administrators were looking for – or Hilco made a better offer that paid down more of the debt.

HMV UK will resume accepting gift vouchers starting today just one week after the company announced it would cease honoring the vouchers as it assesses its future.

Source: MCV


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