Report: Hilco looks to save half of HMV stores with creditor deal

National news stories suggest music giants could take extended-payment-term deal in bid to keep retailer on the high street

Restructuring specialist Hilco is striving to save about half of HMV's UK fleet of 223 stores, according to national news reports.

Hilco confirmed last week that it had acquired HMV's debt, with numerous reports suggesting the company paid about £40m for £120m-worth of the retailer's liabilities. According to an article in the Daily Mail, Hilco will be talking to landlords and entertainment publishers this week to try to secure HMV's future.

Giants including Universal, Warner and Sony are reported to be mulling over a creditors' agreement which would allow the embattled chain to pay for DVDs and CDs by instalment over a longer period of time.

The Mail also reports that Hilco is in discussions with the administrators of fallen camera retailer Jessops, which the paper speculates could provide the chance to install concessions at HMV stores.

HMV succumbed to administration earlier this month, putting more than 4,000 jobs at risk. The company has a history with Hilco, having sold off its Canadian operations to the restructuring specialist in 2011. Hilco claims that its turnaround strategy on the other side of the Atlantic has preserved about 1,500 jobs as "the business has been re-energised and is making excellent progress".