HMV Debt Acquired by Hilco
Posted by Thomas Whitehead
Gift cards are being honoured once again
HMV, one of the UK's foremost entertainment media retailers in the UK, and by extension a major part of the video game presence on the high-street, has been in administration since last week. It's been announced today that the company's debt has now been acquired by Hilco, a retail restructuring firm that also owns HMV Canada; it's reported by Gamesindustry.biz that sources close to the deal feel that this increases the retailer's hopes of emerging from administration.
Prior to the news of Hilco's acquisition of the debt, the retailer's administrators also confirmed that gift cards are now being accepted in stores. There was anger among consumers when it was announced that gift cards wouldn't be accepted when the company went into administration, no doubt voiding a number of Christmas gifts. In a sign of a steadying ship, the administrators also announced that all charitable pledges would be paid.
The ability of Administrators to honour gift vouchers will depend on the specific circumstances of each case. Since our appointment as Joint Administrators on Tuesday afternoon, we have been urgently assessing the Companies' financial position.
I am pleased to confirm that, having concluded this assessment, we are able to honour gift cards. I can also confirm that all money raised by HMV for various charities will be paid in full. We recognise that both of these matters have caused concern for individuals and organisations affected and are pleased to have reached a positive outcome."
We will continue to assess the longer term options for the business whilst continuing to trade. I am hopeful this process will result in the business continuing as a going concern.
Some positive news for the retailer and its employees, though important steps are still needed before the company can emerge with a stable future. Perhaps these revelations and the rescue of GAME, last year, give hope of a successful outcome.