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HMV rescue deal completed

Hilco acquisition saves 2,500 jobs and 141 stores

Restructuring specialist Hilco has completed its acquisition of the business and certain assets of HMV.

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The deal, which is reportedly worth £50 million, is for 141 stores, 25 of which had previously been slated for closure by the administrators Deloitte, and approximately 2,500 employees.

Hilco bought HMV's debt in January shortly after the entertainment retailer fell into administration, effectively giving it control of the group.

Hilco CEO Paul McGowan 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."

Hilco executive Ian Topping will initially run the business alongside existing HMV UK management. He said: "This is an exciting investment for the Hilco team and we will be able to use some of the developments already progressed in Canada to restore HMV to health. We intend to reverse the earlier decisions to sell tablets and other devices in the stores and to reclaim the space for an enhanced music and visual range.

"The reaction of the British public to the administration of HMV shows a strong desire for the business to continue to trade and we hope to play a constructive part in delivering that."

Hilco also said it's in negotiations with landlords with a view to re-establishing an HMV business in the Republic of Ireland.

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