Hope for HMV as music labels eye rescue deal

By SCOTT REID
Published on 21/01/2013 00:00

Music labels and film studios could throw their weight behind a rescue deal for collapsed retailer HMV.

Entertainment giants including Sony, Universal and Warner Music are thought to be planning to offer HMV suitors generous credit terms and cut the price of CDs and DVDs to help keep the chain’s presence on the high street.

They are fearful that the demise of HMV – the last specialist high street national music and entertainment retail business, with more than 4,000 staff and 223 stores – will lead to even more pressures on the industry as supermarkets and online firms such as Amazon compete to slash prices.

It is thought that turnaround group Hilco – which already owns HMV Canada – is among the favourites to rescue HMV and is said to have been locked in talks with administrators Deloitte on Friday.

There was also pain for 760 staff at failed DVD and games rental firm Blockbuster at the weekend when administrator Deloitte announced it was closing 129 of its 528 stores in the coming weeks.

The two firms hit the wall within 24 hours of each other last week in a devastating blow for Britain’s retail sector.

But there are understood to be about 50 potential suitors circling HMV and its chief executive Trevor Moore has said he is “convinced” that the chain’s future can be secured.

Game – which was bought out of administration itself last April – has confirmed it is interested in buying stores.

SCOTT REID