Hilco buys HMV debt

Restructuring company Hilco has bought HMV’s debt, taking effective control of the company.

Hilco, which owns HMV Canada, has bought the debt of HMV from the group’s lenders Lloyds and RBS for what is believed to be “much less” than the estimated £176m debt because the chain is in administration, the BBC reports.

Although Hilco won’t own HMV, buying its debt gives the company effective control of the 223-store DVD, music and book retailer.

Hilco has previously said the support of HMV's key suppliers had been of "critical importance" to the business's performance.

An arm of Hilco, Valco Capital Partners, bought Borders in 2009. Subsequently the business went into administration and all branches were closed.