HMV to honour gift vouchers as Hilco deal nears

Kasmira Jefford
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CRISIS-HIT music retailer HMV has performed a U-turn on its initial decision to refuse gift vouchers, administrators confirmed yesterday.

Deloitte, the business advisory firm which took control of retailer last week, said HMV vouchers can now be redeemed in stores from today.

It also said funds raised by HMV from the sale of charity releases, including the Hillsborough Justice Collective single, will be paid “in full as soon as possible” after a public backlash last week.

“We recognise that both of these matters have caused concern for individuals and organisations affected and are pleased to have reached a positive outcome,” joint administrator Nick Edwards, said.

“We will continue to assess the longer term options for the business whilst continuing to trade. I am hopeful this process will result in the business continuing as a going concern.”

HMV’s initial decision not to redeem vouchers contrasted with Blockbuster, the DVD rental chain, which announced it would honour vouchers after going into administration last week. HMV’s 223 stores collapsed into administration last week after restructuring talks with its lenders and suppliers collapsed, putting more than 4,000 jobs at risk.

However, it is understood that Deloitte is close to striking a deal with Hilco UK, led by Paul McGowan – the owner of HMV Canada – that could see the turnaround fund running HMV alongside administrators in the short term, without the business changing hands.

Deloitte decline to comment.