HMV to accept gift vouchers again

HMV Closures

People who hold HMV gift vouchers will be able to use them in stores again from tomorrow, the company’s administrator announced today.

When the music, DVD and video games retailer went into administration last week, staff were told that they could not accept payments made with gift vouchers. However, Deloitte said today that it is now able to honour the gift vouchers after assessing HMV’s financial position, the BBC reported.

Deloitte has received more than 50 expressions of interest in buying all or part of HMV and it is likely to take some time for all the potential buyers to be assessed.

Newspaper reports say that restructuring specialist Hilco, which acquired HMV Canada in 2011, appears to be one of the front-runners to buy HMV’s UK business.

According to the Sunday Telegraph, it’s believed that some of the world’s biggest music labels and film studios are in favour of a bid from Hilco which could keep the 91-year-old retailer in business.

The company specialises in buying retailers out of administration and turning them around. The Telegraph said yesterday that music companies may be willing to lower the price of CDs and DVDs and give HMV generous credit terms as they want to avoid the situation of having to rely on the low-price operations of supermarkets and Internet distributors.

Retail research specialist Verdict Research has calculated that HMV had a 22.2% share of the UK music and video market in 2012.

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