While many people expected HMV stores to vanish from the nation’s high streets after the brand’s financial troubles were made public, administration advice has helped it to last long enough to find a buyer.
This week, it was reported that recovery specialists Hilco have purchased the entire chain of HMV stores, whose primary business involves the retail of CDs, DVDs and console games.
Hilco had already acquired the company’s debts in January 2013, sparking the expectation of this acquisition of the brand’s property portfolio and retail outlets.
Reuters reports that the deal secures the future of 141 stores and should see up to 2,500 staff keep their jobs.
Exact financial figures have not yet been published, but several reports in the media have put a price tag in the region of £50 million on the purchase.
Since revealing the extent of its economic distress, HMV’s bosses have been receiving administration advice, including recommendations to close 25 of the 141 stores involved in this latest deal.
Doing so would have helped the brand to survive for longer if a buyer had not been found; however, Hilco’s entrance into the deal should now save those 25 stores too, and demonstrates that suitable administration advice can help troubled firms to be sold as a going concern, rather than entering company liquidation.