Hilco takes on HMV debt

HMV Canada owner Hilco has taken on the debts of the U.K.-based HMV retail chain, effectively giving the company control of the chain, The Financial Times reports.

Hilco's purchase of the debt owed to Lloyds bank and Royal Bank of Scotland, believed to be roughly £176 million, is the first step to stabilize HMV while Hilco paves the way to assuming full ownership of the retail company. It is believed Hilco paid far less than the estimated debt as HMV is currently in administration.

Earlier in the month it was announced the U.K. multimedia retailer was entering administration. Financial services firm Deloitte was put in control of the chain, seeking to secure a buyer for the company while its stores remain open for business.

The retailer will resume accepting gift vouchers starting today, one week after the company announced it would cease honoring the vouchers as it assesses its future. It was previously reported U.K. retailer GAME was looking to acquire as many as 45 HMV stores.