Struggling HMV hit with £48m fees
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.’