HMV 'may be rescued in £50m deal'

HMV HMV may be rescued in a £50 million deal that will preserve 2,500 jobs, it has been reported.

Specialist restructuring firm Hilco is poised to sign an agreement securing the future of the music retail chain and ending fears it could disappear from high streets, Sky News reported.

The deal, which could be announced as early as Friday morning, will involve the company emerging from administration, backed by a new company incorporated in the UK, the report said.

Hilco will acquire about 130 HMV-branded stores, and all nine of the outlets which operate under the cut-price music brand Fopp, it added.

Major music companies and film studios, keen to keep a major distribution channel on the high streets, are understood to have agreed to new supply terms with HMV and have approved the deal, the report said.

The group called in administrators from Deloitte in January but hopes of a rescue deal were subsequently raised after Hilco bought the company's debt.

It was announced in February that 66 of HMV's 220 shops would close over two months, at the cost of nearly 1,000 jobs.

No one from Deloitte was available to comment. An HMV spokesman declined to comment.
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