HMV could be rescued this morning in 50 million Hilco buyout

UPDATE: The deal has been confirmed.

Update #2: HMV administrator Deloitte has now announced the deal, specifying that it will save 2643 jobs.

"The sale of the restructured portfolio secures the employment of 2643 staff, saves one of the world's most iconic retail brands and provides a solid financial footing on which the business can be taken forward," commented administrator Nick Edwards. "We wish the Hilco UK and HMV teams every success with the business."

Update: The deal has been announced on Hilco's website.

Hilco will keep 141 HMV stores open, including 25 earmarked for closure. The company also wants to re-establish an HMV presence in Ireland.

Hilco will abandon HMV tablet sales as well as those of other digital devices. Instead, more store space will be given to music and visual entertainment ranges. There was no specific mention of games. I expect there was a fair amount of pressure from music and film suppliers - the companies that have propped HMV up - involved in the new direction.

"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," commented Ian Topping, one of two Hilco executives given a key role in running HMV.

"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 chief executive Paul McGowan will become chairman of HMV.

Original story: Iconic UK music, film and game shop-chain HMV could be saved as early as this morning in a 50 million buyout deal.

By who, Asda?

hmv

No, Hilco, apparently - the restructuring company that bought HMV UK's debt and owns HMV Canada. Hilco's been the favourite for a while.

Most major UK news outlets are reporting the story, but few mentioned a source. Reuters claimed its information came from "a source familiar with the deal".

Hilco is expected to take on 130 HMV stores and nine Fopp stores. Doing so will save 2500 jobs. HMV had 230 stores when administration began earlier this year.

Sky News said Hilco would appoint its own executives to help the existing HMV ones.

Apparently music companies, film studios and landlords are chuffed with the Hilco deal.

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