Half of HMV's UK Locations Could be Closed by Hilco

While UK retailer HMV will survive to fight another day after HMV Canada owner Hilco took it over, it looks like the chain is about to be streamlined so that it operates more efficiently. MCV (by way of The Daily Mail) is reporting that Hilco may close around half of HMV’s 223 UK stores. It’s the same strategy that the firm used to successfully turn around HMV Canada, which it acquired in 2011.

This could serve as a way to sell off some of the retail locations that GAME and other companies had indicated an interest in buying. Some estimate that Hilco paid £40 million to acquire the UK chain, which had an estimated debt of £120 million. Property consultants CBRE and Savills have been hired to assess the chain’s real estate and there is some talk that Jessops concessions may take up some of the vacated real estate.

On a related note, MCV is also reporting that HMV UK turned down higher offers to take the Hilco deal. That report, based on a Daily Telegraph report claims that the eight-bank syndicate of lenders owed the bulk of HMV’s outstanding debt feared that it would hurt their reputations if they turned the chain over to companies that might strip the store chain of its assets to turn a profit.

Source: MCV