Hilco Buys HMVs Debt
The struggling music retailer had about $279 million in debt
Hilco Consumer Capital has reportedly bought British music retailer HMV Group plc’s debt.
The debt, about $279 million, was held by a consortium of banks led by Royal Bank of Scotland and the Lloyds Banking Group, according to an article by The New York Times. Hilco paid around $190 million to buy it.
In 2011 Hilco bought HMV’s Canadian operations for $3.3 million. The company already owns Polaroid and Linens ‘N Things.
HMV filed for administration, the U.K.’s equivalent to Chapter 11 bankruptcy protection, on Jan. 15. The London-based company sells films, games, music and digital technology products out of 223 stores across the U.K., which have remained operational.
The company filed for administration after it failed to obtain additional financing. It lists Amazon.com Inc. (Nasdaq: AMZN), Live National Worldwide Inc. and other mass-merchant retailers as its largest competitors.
HMV, which stands for His Master’s Voice, was delisted from the London Stock Exchange on Jan. 15. The company, founded in 1921, was publicly listed since 2002.
Nick Edwards, Rob Harding and Neville Kahn of Deloitte are HMV’s joint administrators.
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