HMV has been officially rescued by buyer Hilco. The retail brand will now be headed up by former Steinhoff Group CEO Ian Topping.
MCV reports that 141 stores and 2,500 employees will remain following Hilco’s acquisition, and that Hilco’s CEO Paul McGown will serve as HMV’s new chairman.
25 stores that were due to close have now been rescued as a result, and reports suggest that the brand will re-align away from tablets and tech, focusing instead on ‘music and visual’ products. This casts some confusion over the future of games at HMV stores moving forward, following Deloitte’s move to make the brand’s game arm redundant in February.
In a statement released today, McGown said, “We have spent a number of weeks negotiating revised terms with landlords and the key suppliers to the business, all of whom have been supportive of our plans to maintain an entertainment retailer on the high street.
“We hope to replicate some of the success we have had in the Canadian market with the HMV Canada business which we acquired almost two years ago and which is now trading strongly. The structural differences in the markets and the higher level of competition in the UK will prove additional challenges for the UK business but we believe it has a successful future ahead of it.”
Topping added, “This is an exciting investment for the Hilco team and we will be able to use some of the developments already progressed in Canada to restore HMV to health. We intend to reverse the earlier decisions to sell tablets and other devices in the stores and to reclaim the space for an enhanced music and visual range.
“The reaction of the British public to the administration of HMV shows a strong desire for the business to continue to trade and we hope to play a constructive part in delivering that.”
What do you make of the above? Is this a win for the UK retail sector? Would you like to see them continue on with games retail? Let us know below.
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