It has been announced today that high street entertainment store HMV has been rescued from closure at the last minute. We answer five questions on the deal that saved the popular chain of stores.
Who has rescued HMV?
Hilco, a restructuring specialist who already owns HMV Canada, has struck up a deal to buy the business, acquiring 132 shops.
No official purchase figure has been announced, but the chain is believed to have been sold for around £50m.
What does this mean for the retail chain and its employees?
It means that the UK’s last surviving national music retailer – that collapsed in January – will remain open, saving around 2,500 jobs.
Is Hilco expected to make any changes to the brand?
As it’s early days not much is known, except that Hilco plans to have its own people working alongside existing HMV management in the new set-up and that the company will be led by Hilco executive Ian Topping, former chief executive of the furniture retail group Steinhoff in the UK.
Mr Topping said he hopes to replicate the success Hilco have had with HMV Canada, which the company purchased two years ago.
What has Hilco said about the deal?
Mr Topping told the BBC: “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.”
What have other high street experts said?
Partner at advisory and restructuring firm, Zolfo Cooper, Peter Saville told the BBC:
“Hilco understands the market well and is a seasoned High Street veteran. The news that HMV is to continue trading will also be welcomed by suppliers, as an over-reliance on online channels may be uncomfortable.”
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