Future of Northampton HMV store is secured by rescue deal

The HMV chain has been saved in a rescue deal.

The future of the HMV store in the Grosvenor Centre in Northampton has been secured after a firm reached a deal with administrators Deloitte to rescue the music and DVD retailer.

Hilco, a restructuring specialist, has today completed the acquisition of HMV, including 141 stores, nine of which are under the Fopp brand. which has saved the jobs of 2,500 employees.

HMV, the UK’s last surviving national music retailer, called in the administrators in January after months of financial crisis caused by a downturn in sales as a result of competition from online rivals, supermarkets and digital downloads.

Paul McGowan, chief executive of Hilco, said the firm had spent a number of weeks negotiating with landlords and the key suppliers to the business.

He said: “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.”

The Hilco team will be led by Ian Topping, formerly chief executive of the Steinhoff Group in the UK.

Mr Topping said: “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.”