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HMV exits administration as 2,500 jobs are saved in £50m Hilco deal

141 stores rescued
Fri Apr 05 2013, 13:03
An HMV shop

UK MUSIC RETAILER HMV has exited administration thanks to restructuring firm Hilco, which will see 2,500 jobs saved.

HMV announced that it had gone into administration back in January, which it warned could see it lose 250 stores and 4,000 staff.

However, the firm today received some good news, as Hilco on Thursday announced plans to save the struggling music retailer in a £50m deal. While it won't save all HMV stores or staff, the deal will see 2,500 jobs and 141 shops rescued, including all nine Fopp branded stores.

HMV, understandably, is chuffed, and said it is focussed on launching a new website and digital services scheme, with other "exciting stuff" in store.

A HMV spokesperson said, "We're officially out of administration and under new ownership. The whole team's working hard behind the scenes to bring you the new and improved HMV.

"A new website and digital services, a rebooted Pure rewards scheme, and a fresh approach to our stores are all in the works. We've got some truly exciting stuff in store for you but all of this is going to take us a little while to perfect."

However, HMV shops might not remain as we know them, as Hilco has said that as part of its takeover it will stop selling devices such as tablets and iPhone docks, instead focusing on music, DVDs and Blu-ray discs.

Hilco CEO Paul McGowan, who will become chairman of HMV said, "We have spent a number of weeks negotiating revised terms with landlords and the key suppliers to the business, all of whom have been supportive of our plans to maintain an entertainment retailer on the High Street."

"We hope to replicate some of the success we have had in the Canadian market with the HMV Canada business which we acquired almost two years ago and which is now trading strongly. The structural differences in the markets and the higher level of competition in the UK will prove additional challenges for the UK business but we believe it has a successful future ahead of it."

It is being reported that major music labels and film studios are backing the deal and have agreed new supply terms with HMV, and we've been in touch with the firm to confirm this. µ

 

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