Hope for HMV

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HOPES for the future of HMV have been raised with the purchase of the company's debts.

Hilco UK announced today (Tuesday) it has acquired the music chain's debts from the group's lenders, although it has not bought the business itself.

The company which has 239 stores, including a branch in the Kingfisher Shopping Centre which employs around 15 people, called in administrators Deloitte LLP after struggling with tough competition from online retailers, supermarkets and digital downloading.

A statement said: "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."

Customers will now be able to use their gift cards in stores following a u-turn. They had previously been told they were unable to use cards while HMV was in administration Nick Edwards from Deloitte said shops would be accepting them from today.

"The ability of administrators to honour gift vouchers will depend on the specific circumstances of each case. Since our appointment as joint administrators last Tuesday afternoon, we have been urgently assessing the company's financial position.

"I am pleased to confirm that, having concluded this assessment, we are able to honour gift cards."

He added the proceeds raised through the sale of charity releases, including the Hillsborough Justice Collective single, would be paid in full as soon as possible.

"We recognise that both of these matters have caused concern for individuals and organisations affected and are pleased to have reached a positive outcome."

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