HMV Acquired by Restructuring Company Hilco
posted on by Andrew Osmond
In a statement on Friday April 5, the restructuring company Hilco announced it had "completed the acquisition of the business and certain assets of HMV." This includes 132 HMV stores, among them 25 stores which had been slated for closure. (The locations of the stores were not given in Friday's statement.)
Paul McGowan, Hilco's CEO, is quoted as saying, “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.”
Iam Topping of Hilco adds, "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 statment adds that Hilco is in negotiations with landlords to re-establish HMV business in the Republic of Ireland.
However, the BBC website quotes a property expert who argues, "I suspect that the actual number (of stores) which will ultimately continue to trade will be lower, as landlords refuse to or cannot meet the terms on which the new owner is prepared to accept a lease." The Guardian newpaper points out that "(Hilco) bought the books and entertainment chain Borders in 2009, only to close all its branches and put it into administration four months later."