Collapsed music and movies chain HMV could be saved after restructuring firm Hilco took over the retailer's debts from its lenders Lloyds and Royal Bank of Scotland.
It is the first step towards rescuing the iconic music and DVD business after it collapsed into administration last week under debts of £176m. Buying the debt gives Hilco effective control of the business and buys time for the administrators.
Details of the potential rescue came as the stores started to accept HMV gift vouchers again. The administrators caved in to pressure to reverse a previous decision that had made the tokens worthless.
Hilco, a restructuring specialist, is thought to have the support of music labels including Universal Music, Warner Music and Sony for any takeover, having already bought HMV Canada in 2011 for £2m.
The record labels are said to be concerned that without a recognised specialist music retailer on the high street margins could be squeezed even further by cut-price supermarket and internet offers.
It is believed that the businesses, which are some of HMV's biggest suppliers, may be willing to cut the price of CDs, DVDs and give HMV generous credit terms – something afforded to Hilco in Canada.
Although Hilco has not bought HMV outright, buying the debt hands them effective control.
Hilco is now expected to work with administrator Deloitte on moving the 92-year-old business forward and could save some of the 4,000 jobs and 230 stores under threat.
Details of the potential rescue came as the stores started to accept HMV gift vouchers again. The administrators caved in to pressure to reverse a previous decision that had made the tokens worthless.
Hilco, a restructuring specialist, is thought to have the support of music labels including Universal Music, Warner Music and Sony for any takeover, having already bought HMV Canada in 2011 for £2m.
The record labels are said to be concerned that without a recognised specialist music retailer on the high street margins could be squeezed even further by cut-price supermarket and internet offers.
It is believed that the businesses, which are some of HMV's biggest suppliers, may be willing to cut the price of CDs, DVDs and give HMV generous credit terms – something afforded to Hilco in Canada.
Although Hilco has not bought HMV outright, buying the debt hands them effective control.
Hilco is now expected to work with administrator Deloitte on moving the 92-year-old business forward and could save some of the 4,000 jobs and 230 stores under threat.
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