Asda considers HMV bid
By Graham Ruddick9:45AM GMT 12 Mar 20135 Comments
HMV collapsed into administration in January and more than 100 stores are set to be closed.
Restructuring specialist Hilco has bought HMV’s debt and is in pole position to acquire the retailer, however, Asda could now launch a late bid to try to take control of HMV.
Asda is understood to have held talks with Deloitte, the administrators to HMV, about a deal and is interested in buying the brand and business, rather than simply converting the stores into convenience food shops
When HMV collapsed into administration, the company had 223 UK sites and employed 4,123 staff. However, Deloitte is closing more than 100 locations and plans to leave the retailer with a “residual portfolio” of 116 stores.
The 92-year-old music chain fell into administration in January after seeing its sales eroded by competition from
So far, the company’s flagship shop on Oxford Street has survived the cull of shops but Deloitte is considering bids for the location.
Hilco, which owns HMV Canada, has said it believes there is a “viable underlying business” in the company. It has been holding talks with HMV’s suppliers, including record labels and film studios, whose support is vital for the future of the company.