Strug­gling HMV hit with £48m fees

Daily Mail - - News -

THE in­vest­ment firm which owns HMV tried to take £48mil­lion from the mu­sic chain as it hur­tled to­wards ad­min­is­tra­tion.

Hilco Cap­i­tal, a so-called ‘turn­around spe­cial­ist’, im­posed the fees on the re­tailer af­ter tak­ing it over in a 013 res­cue deal.

Pay­ing these fees along with other costs helped push HMV into losses ev­ery year – even when its un­der­ly­ing busi­ness ac­tu­ally made a profit, ac­cord­ing to anal­y­sis by The Sunday Times.

As a re­sult HMV – which called in ad­min­is­tra­tors on Friday, put­ting , 00 jobs at risk – has paid no cor­po­ra­tion tax since it was taken over. Hilco said that in some cases the fees listed in the ac­counts have not been paid, mean­ing the true to­tal it has pock­eted is lower.

The firm added that no fees have been paid for the past two years.

A spokesman said: ‘Hilco has ex­pended con­sid­er­able ef­forts in en­sur­ing the con­tin­u­ance of HMV as a busi­ness, in­clud­ing the pro­vi­sion of all re­tail and prop­erty ad­vi­sory ser­vices at rates ei­ther in line with or below the mar­ket lev­els.’

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