6 Apr 2013

HMV acquired by restructuring company

7:00 am on 6 April 2013

UK music and DVD retailer HMV is being brought by Hilco, a specialist restructuring company.

Hilco, which already owns HMV Canada, said on Friday it had acquired 132 HMV shops and all nine branches of the Fopp chain.

HMV was the last surviving national music retailer in Britain. It collapsed in January due to competition from online rivals, supermarkets and digital downloads.

No figure has been officially announced, but the BBC reports the deal is believed to be worth about £50 million.

Hilco chief executive Paul McGowan said the company hoped to replicate its success with HMV Canada, which it acquired nearly two years ago and which he said was now "trading strongly".

At its peak, HMV had more than 400 outlets around the world, more than half of them in Britain.

HMV has been in business since 1921, when its first shop was opened on Oxford Street in London.