January 23, 2013 10.54 am This story is over 130 months old

Hope for Lincoln HMV as firm buys company’s debt

Brighter future: Jobs at HMV look more hopeful as a restructuring business bought the company’s debt.

Jobs at the HMV shop in Lincoln could be safe as restructuring company Hilco takes control of the HMV Group.

Hilco, which already manages HMV Canada, bought the entertainment retailer’s debt off its banks, Lloyds TSB and Royal Bank of Scotland.

This means that the company will start to gain full control over the business, but insists it has not bought the company.

Hilco, which helps restructure a variety of businesses, is working closely with HMV’s administrators, Deloitte, to secure the future of the store.

At present, all stores continue to trade as normal, and will accept gift vouchers.

However, it is still not known if any jobs are at risk due to the restructuring of HMV.

In a statement, Hilco UK said: “Hilco UK confirms that it has acquired HMV’s debt from the Group’s lenders. It has not bought the business itself.

“Hilco believes there to be a viable underlying HMV business and will now be working closely with Deloitte who, as Administrators, are reviewing the business to determine future options.”

HMV UK went into administration early last week due to increased competition with the online market and supermarket deals.

Hilco has already seen success with HMV Canada in the past year, with sales of over £171 million. This was partly due to a spike of sales over the festive period.