Footfall at entertainment retailer HMV has surged in recent days as publicity about its potential closure sent shopper traffic to levels typically only seen at Christmas.
The leap in shopper traffic came as restructuring firm Hilco weighed up its options after buying the collapsed retailer’s debt on Tuesday.
Sources said both footfall and sales have been “well ahead of target” in recent days as consumers took advantage of HMV’s blue cross Sale and showed support for the retailer following an outpouring of regret over its potential disappearance from the high street.
“The stores are really busy and have got a pre-Christmas feel to them. It’s down to a number of factors - the public showing support for HMV but also people wanting to get great bargains,” one source said.
Hilco acquired HMV’s £120m debt from its lenders for about £40m on Tuesday, effectively giving the restructuring specialist control. However, HMV still remains in administration and its future hangs in the balance.
Because of Hilco’s success in turning around HMV Canada, senior staff at the UK business are optimistic the same can be done here if Hilco opts to acquire the retailer, according to another source.
“Hilco has done a good job in Canada, which is encouraging,” said the source. Hilco’s acquisition of HMV’s debt provides “a bit more time to understand what the opportunities are”, he said, and a decision to accept gift cards again was also “a good sign”. Another source said Hilco’s HMV Canada acquisition was a “dress rehearsal” for a move on HMV in its home market. “The main prize is the UK,” he said.
Hilco is also considering acquiring the Jessops brand, with a view to operating concessions in HMV shops, as revealed by Retail-week.com on Wednesday.
Richard Akers, executive director of the UK’s largest landlord, Land Securities, hoped HMV could be kept alive. He said if the retailer was to disappear, the high street would be worse off.
“HMV is still a very popular store. It would be good for the shopping experience if there was an HMV-type offer that was well managed,” he said.
But some observers remained cynical about Hilco’s plans for HMV, because of its previous involvement in high-profile closures.
One source observed that options still open to Hilco include liquidation or selling on the debt.
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