It’s now official; UK retail chain HMV has been officially bought by restructuring and investment firm Hilco in a deal worth £50 million, which will mean that hundreds of stores will not be closed across the UK and many jobs will be saved.
At the start of 2013 a spate of UK stores went into administration with HMV being the most prominent of these to face closure. Since then there has been a great deal of interest in the stores and their futures, but only today has a definite future been secured for one of the UK’s most well-known chain stores.
The purchase was announced by Hilco today and the company made a statement where it addresses the fact that the purchase has now been completed from the administrators Deloitte, and that the 141 shops (including 25 that were previously earmarked for closure) and nine Fopp stores will all stay open, saving around 2,500 jobs.
Hilco’s chairman, Paul McGowan, made a statement on the company’s website:
“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,” he said. “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.”
See also: Blockbuster UK saved by buyout, 264 stores to remain open
“The HMV UK business will initially be led by a Hilco team working alongside existing management,” he added. “The Hilco team will be led by Ian Topping, formerly Chief Executive of the Steinhoff Group in the UK, and Henry Forst, an Investment Director at Hilco while Paul McGowan will take up the role of the Chairman of the new business.”
The company, who already owns the HMV Canada brand, has announced plans to ditch technology and focus on physical media like DVDs, CDs and Blu-rays going forward. It looks as though HMV’s foray into selling tablets, speakers, docks and other gadgets was short lived.
It’s great news for the British high street and with stores being resurrected like this in the past (see GAME) and then continuing onwards with success it could signal a new lease of life for HMV.