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A new-era HMV will continue to sell books, restructuring company Hilco has confirmed.
Former Waterstones employee Michael Neil will also remain as the chain’s commercial director.
Hilco announced last week (5th April) that it had bought 141 of the 230 HMV stores, including 25 previously earmarked for closure, in a deal worth a reported £50m. The move will save 2,500 jobs and all nine Fopp stores.
The company said it would attempt to replicate the success it had with HMV in Canada, with new boss Ian Topping saying the chain “intended 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 new regime has asked publishers for support in the form of lengthening credit terms and asking for stock on consignment. A source from within the industry said: “Books will increase in their space and so will range, but very much as an accompaniment to whatever deals and promotions they are running and what is going on in the music side of things.”
Nick Wells, m.d. of Flame Tree Press, said: “We have been encouraged to set up a new contract with HMV, which we are currently working on. HMV Canada is a good set-up—they sell a lot of entertainment and culture titles with very steady book sales. It runs lots of promotions and I expect HMV in the UK will be run in the same commercial way.”
Publishers expressed pleasure at the partial saving of the chain. Kerr MacRae, Simon & Schuster executive director, said: “It is good news. HMV has done well for us in the past with some of our music and culture titles.” Anna Bond, UK sales director at Pan Macmillan, said: “I am really pleased to hear that some of the HMV stores have been rescued, and look forward to working with them and seeing what they plan to stock.”
Hilco bought HMV’s debt in January, taking effective control of the company along with administrators Deloitte. Last year, book sales at HMV were up 16% year on year, excluding Fifty Shades sales, after refocusing its core book offer.
An arm of Hilco, Valco Capital Partners, bought Borders in 2009. Subsequently the business went into administration and all branches were closed.