Turnaround specialist Hilco UK has acquired HMV’s debt for £40m, effectively handing control of the collapsed entertainment specialist to the restructuring firm.

Hilco is understood to have acquired the debt, thought to have stood at £120m, from the retailer’s lenders Lloyds and Royal Bank of Scotland, the Financial Times reported.

The move means that while Hilco has not acquired the retailer it puts HMV in a more stable position and hands Hilco, which runs HMV Canada, effective control of the retailer. However, HMV still remains in administration.

A source close to Hilco said it was “too early to say” if Hilco would end up acquiring the business in full.

Hilco was appointed on Monday to advise administrator Deloitte on running the business.

HMV collapsed into administration last week putting 4,000 jobs and 230 stores under threat.

Hilco was unavailable for comment.

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