HMV bank syndicate turned down offers higher than Hilco’s

Hilco’s bid for HMV’s debt was not the highest on the table, it has been claimed.

The Telegraph reports that the eight-bank syndicate of lenders including RBS and Lloyds who are owed the bulk of HMV’s outstanding debt feared that their reputations would be tarnished were they to turn the chain over to an asset-stripping firm.

Amongst the 50 offers submitted to administrators were some that offered up to 4p per pound more than Hilco. Lucrative offers for assets such as HMV’s Oxford Street store were also rebuffed.

With talks between Hilco and administrators Deloitte regarding future strategy still ongoing, property consultants CBRE and Savills have been hired to assess the chain’s High Street real estate ahead of the likely closure of around half of HMV’s UK outlets.

There has also been talk about the possible opening of Jessops concessions in some of the surviving HMV outlets.