HMV's stock deal bid

ATTEMPTS to salvage music chain HMV will continue this week as attention turns to the prospect of a new stock deal with suppliers.

ATTEMPTS to salvage music chain HMV will continue this week as attention turns to the prospect of a new stock deal with suppliers.

Restructuring firm Hilco, which recently bought the company’s debt, is reportedly set to open negotiations with global entertainment firms and the chain’s landlords this week.

According to reports, Hilco wants to rescue about half of the 223 stores in the UK as it looks to repeat the strategy that saw it turn around HMV’s Canadian arm, which it bought in 2011.

Music firms such as Universal, Warner and Sony are keen to see HMV survive as it provides an alternative to online retailers. They are understood to be considering an extended credit deal that would allow HMV to buy CDs and DVDs in instalments.

Hilco is thought to have paid around £40m for £120m of HMV’s debt in a move which gives it effective control of the business.

It is also in talks with the administrators of Jessops, the camera chain, which could see Jessops concessions in HMV stores.

HMV went into administration earlier this month, putting more than 4,120 jobs and 223 stores at risk.

 
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