HMV thrown lifeline by Hilco

Restructuring specialist agrees to buy retailer's debt, potentially saving 4,350 jobs

Ailing entertainment and technology retailer HMV has been thrown a lifeline this afternoon after restructuring specialist Hilco agreed to buy its debt.

The high street chain, whose debt last October stood at £176m, will be managed by Hilco after it decided to buy the debt from HMV's lenders Royal Bank of Scotland and Lloyds.

Last week, the retailer entered administration, putting the jobs of its 4,350 staff at risk.

On Monday, administrator Deloitte performed a U-turn on its decision not to accept gift vouchers and HMV will now be taking them in all stores.

DVD retailer Blockbuster followed HMV's lead and entered administration the next day. The firms join a growing list of high street chains which have experienced problems, including Jessops and Comet.