STOCKPORT HMV STORE SAVED FROM CLOSURE

        Under the sale to Hilco, 141 of HMV’s stores and the
        group’s head office and distribution functions are
        transferred into the new ownership securing 2,643 jobs. 

        HMV, the music, DVD and games retailer, fell into the
        hands of Deloitte later in mid-January, after the 92-year
        old retailer was unable led to meet a £30m banking
        covenant in probably the most high-profile retailer failure
        since the collapse of Woolworths in November 2008.

        On Deloitte’s appointment, HMV operated 222 stores, of
        which 81 have closed. All nine Fopp stores are also
        included in the purchase.

Paul McGowan, CEO of Hilco, added:

“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”.

McGowan remains confident in the face of the obvious challenges in returning HMV to a high street-based business with a sustainable business model.

He added:
“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.”

The Hilco team will be led by Ian Topping, formerly chief executive of the Steinhoff Group in the UK, and Henry Foster, an investment director at Hilco, while Paul McGowan will take up the role of chairman of the new business.