Hopes raised for music shop chain

store: HMV in Preston
store: HMV in Preston
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Hopes have been raised for the future of an under threat music chain following a buy-out.

HMV, which has a large branch on Fishergate in Preston, announced last week that it was going into administration, placing uncertainty over thousands of jobs.

Restructuring business Hilco UK revealed yesterday that it had now taken on HMV’s debt from lenders Lloyds and Royal Bank of Scotland, in a move effectively giving it control of the chain.

It comes after Hilco was appointed adviser to HMV’s administrator Deloitte yesterday.

The move should give administrators more time to secure the future of the 92-year-old company and will bring some certainty for the business.

Hilco, which is best known for its recent rescue of furnishings group Habitat, has been linked to the company since it hit the wall last week, putting more than 4,120 jobs and 223 stores at risk.

HMV sold its 121 stores in Canada to Hilco for £2m in 2011.

The news comes after HMV’s administrators bowed to public pressure on Monday and said they will accept gift cards at the collapsed music chain

Administrators Deloitte had stopped accepting them once appointed to the business last week.