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 tomorrow 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.
HMV called in administrators from Deloitte in January but hopes of a rescue deal were subsequently raised after Hilco bought the company's debt. No one from Deloitte was available to comment tonight. An HMV spokesman declined to comment.
HMV are on the verge of a £50 million rescue by specialist restructuring firm Hilco in a move that could save 2,500 jobs and 140 UK shops, according to Sky News.
As HMV announce a further 37 stores are to close many of you have taken to twitter to mourn the loss of local shops:
Sad news about closure of HMV in Middlesbrough. Had a very enjoyable stint working there one Christmas many years ago with some top people
Great, so my local HMV (and the store i used to work at) is closing down =( My thoughts go with the staff @hmvmansfield
Absolutely gutted to hear HMV Stockport is closing down. Hope my friends there soon find employment elsewhere. The end of an era :(
The full list of HMV stores which will close sometime in the next four to six weeks:
- Ashford, Basildon, Bolton, Cheltenham, East Kilbride
- Enfield, Folkestone, Glasgow Argyle
- Gloucester, Grimsby, Hatfield Galleria
- Heathrow T5 Departure Level, Heathrow Terminal 1, Heathrow Terminal 3, Heathrow Terminal 4
- Hemel Hempstead, High Wycombe, Isle of Wight
- Lancaster, Leadenhall, Mansfield
- Middlesbrough, Newbury, Newcastle Silverlink
- Newport, Nuneaton, Redditch
- Salisbury, Scarborough, Southport
- Stafford, Staines, Stockport
- Swindon, Taunton, Torquay, Woking
- Click here to see the original list of 66 stores which will also be closed.
HMV administrators Deloitte have confirmed another 37 stores will close "in the next four to six weeks in parallel with the 66 stores that are already subject to a closure programme."
We are extremely grateful to the staff for their continued strong support and commitment during an understandably difficult period. All other key stakeholders including suppliers and landlords remain supportive and we appreciate their ongoing assistance.
Another 37 HMV stores are being closed in a move affecting 464 staff at the collapsed music retailer, administrator Deloitte announced.
HMV staff tell us administrators are to announce 40 more store closures tomorrow afternoon.
The administrators of HMV have confirmed today that trading agreements are now in place with many of HMV's suppliers, meaning that major film, music and gaming releases will stay on sale in HMV shops over the next few weeks.
Nick Edwards, Joint Administrator, commented:
We are pleased that these agreements are now in place, allowing us to replenish stock and bring in new titles.
The support of suppliers over the past few weeks has been significant and these agreements demonstrate their ongoing commitment to supporting HMV.
Good progress has been made to date and we have received a positive level of interest in the business.
Discussions are progressing with a number of parties interested in both the business as a going concern and individual assets despite the high fixed cost base associated with a store network.
Music and video retailer HMV has made its chief executive Trevor Moore redundant among 60 staff that have been let go by administrators Deloitte, according to Reuters.
The news agency reports the job losses are to come from HMV's head office network in London, Marlow and Solihull.
Yesterday, the firm announced that 66 of its 220 shops are to close over the next two months, impacting 930 staff.
Mr Moore's reported exit comes weeks after he said he was "convinced" the future of the chain could be secured.
On the day HMV went into administration, he said bosses remained "passionate" about the retailer and would "like to be involved in the business going forward if the opportunity presented itself".
Talks are continuing between Deloitte and restructuring firm Hilco, which bought the company's debt.
The announcement of HMV's administrators to close 66 stores of the music chain has received mixed reactions from Twitter users:
How is #HMV closing down? I swear I buy enough stuff from that store to keep it going for another 5years!
#HMV Sad day, when you can't go in & browse around, picking up things unexpectedly or finding that rare item you'd thought you'd missed! : (