Hilco takes effective control of HMV

HMV was handed a lifeline after restructuring specialist Hilco took over effective control of the music and DVD retailer, according to reports Tuesday.Hilco purchased HMV's debt from the group's lenders, Lloyds and Royal Bank of Scotland.It does not officially own the chain, but the transaction gives it effective control of the retailer that collapsed into administration last week.HMV's debt last October stood at £176m, but it is understood Hilco paid much less to acquire it since the retail chain had entered bankruptcy, according to BBC News. Hilco already owns HMV Canada, which was bought from parent HMV group in 2011 for £2.0m. As a result suppliers might be more willing to give a Hilco-owned HMV in the UK more favourable credit terms.The news comes after Deloitte, which was appointed as administrator, said the retail chain would start accepting gift vouchers in stores from Tuesday. The financial services firm had previously said that gift cards could not be redeemed in stores but had a change of heart after assessing HMV's financial position.HMV, which has 223 UK stores and 4,000 employees, hit rock bottom following competition from online rivals and illegal music and film downloads. RD