Report: Asda May Make a Bid for HMV
Asda and HMV, a match made in heaven?
It's been two months since HMV declared bankruptcy and appointed administrators in a last ditch effort to save the company. Eight weeks on, the company's fate is still unclear. However, there could be light at the end of the tunnel. According to the latest reports, UK retailer Asda may be able to save HMV.
According to the London Telegraph, Asda, which sells groceries as well as books, toys, clothes, DVDs, and electronics, is in talks with HMV administrator Deloitte about taking over the ailing DVD and music retailer. As previously reported, Hilco, the company that bought HMV's Canadian operation two years ago, acquired HMV's debt and it was looking likely the company would acquire HMV UK as well. The Telegraph now says that Asda could launch a late bid to buy the high street music retailer.
Neither Asda nor Deloitte have commented on the rumors, and Hilco and HMV are keeping schtum as well. Since going into administration, HMV and Deloitte have announced a sizable number of redundancies as well as numerous store closures. The first round saw a third of the UK's HMV locations close, while a second round of closures saw a further 37 stores close their doors. Still, with both Hilco and Asda apparently eager to make something of HMV (and Elton John, too), things are looking good for the HMV brand.