Creditors foot £500m bill for HMV and Blockbuster failure

 
Kasmira Jefford
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HMV AND Blockbuster owed creditors almost £500m when they fell into administration in January.

Reports by administrator Deloitte show HMV creditors were owed £347m at the time it went into administration on 15 January.

Unsecured creditors, which amount for more than two thirds of the debt at £237m, stand to recover nothing. The secured net debt of £110.3m is owned by Hilco.

Deloitte’s statement of proposals filed at Companies House last week revealed that HMV losses widened to £37.3m in the six months to 27 October – almost equal to the £38.6m loss made in the year to April 2012.

The document also states that no formal offers for the HMV’s UK business have been received to date, although Deloitte said it continues to hold talks with several interest parties and is “hopeful” of a successful outcome.

Meanwhile Blockbuster, the DVD and video-game rental firm, owed creditors £139m when it fell into administration a day after HMV.

However, Deloitte said this was gross of all unexpired lease liabilities on 530 leases. Trade creditors are owed £6m.

Statement of Proposals