HMV to resume taking gift vouchers, entertainment companies offer help with 'generous' credit terms

Retailer HMV will resume accepting gift vouchers tomorrow, Jan. 22, one week after the company announced it had gone into administration and would cease honoring the vouchers, reports MCVUK.

According to a statement from Nick Edwards of professional service firm Deloitte & Touche LLP, HMV's appointed administrator, the group has decided it will honor vouchers based on their individual circumstances on a case-by-case basis.

"I am pleased to confirm that, having concluded this assessment, we are able to honour gift cards," Edwards said. "I can also confirm that all money raised by HMV for various charities will be paid in full. We recognise that both of these matters have caused concern for individuals and organisations affected and are pleased to have reached a positive outcome.

"We will continue to assess the longer term options for the business whilst continuing to trade," he added.

Additionally, several entertainment companies have offered "generous" credit terms to HMV suitors in an effort to support the failing retailer, according to a report in British newspaper The Sunday Times via MSN Money UK. Film studios and record labels including Universal Music, Warner Music and Sony have offered to cut the price of their goods in-store to keep up with competition from online retailers such as Amazon.

Restructuring firm Hilco, current owner of HMV's Canadian branch, is scheduled to talk with Deloitte on Friday in regards to providing financial assistance. In addition to Hilco, there are said to be around 50 potential companies interested in the chain.

Deloitte previously announced it would close 129 of its 528 HMV stores over the next few weeks, cutting 760 staff members.

Last week HMV drew criticism from the government and public for its decision to cease accepting vouchers. Conservative MP for North Oxfordshire Tony Baldr accused the company of theft in an open letter, saying HMV's administrators must have known it was unable to honor the vouchers when it sold them. Public reaction included a man in Dublin walking out of a store with games after employees refused to take his grandson's voucher.