HMV saved as Hilco acquires company debt - rumour

Struggling retailer HMV has been rescued by HMV Canada owner Hilco, according to a fresh report. But don't get too excited as the deal may still fall apart, say sources close to the matter.

The Financial Times reported on Hilco's bail-out this morning, putting an end to speculation that GAME was gearing up to purchase some 40-45 HMV stores.

Elsewhere, HMV has started to honour store vouchers once more. The move comes after public outcry surrounding the group as unable to accept the tokens.

The FT report recaps HMV's situation, and underlines that the group held £176 million worth of debt as of October 2012. Following today's news chief executive of HMV Trevor Moore, is claimed to have said he was “convinced” that the retailer had a future, which should put those possibly afected by the threat of lay-offs at some ease.

Meanwhile, Sky News city editor Mark Kleinman writes, "I have learnt that Hilco UK is in detailed negotiations with Deloitte, the accountancy firm that was appointed to find a buyer for HMV last week, about an agreement that would see all 229 shops in the UK trading as normal. A deal could be announced as soon as today, according to people close to the talks, although its complexity means that it could be delayed until later in the week."

Kleinman suggests that the proposed deal would see HMV remain as owner of the chain, ad that it would remain in administration. Both Hilco and Deloitte will assist HMV in keeping the business running.

However, he added that the deal is not set in stone and could still fall through.

In other words, 'don't get your hopes up just yet'.