Hilco to rescue music retailer HMV in 50 million pound deal - report

(Reuters) - Restructuring specialist Hilco is set to throw British entertainment retailer HMV a lifeline in a 50 million pound deal that will save 2,500 jobs, Sky News reported.

The deal, which could be struck as soon as Friday, will see HMV emerge from administration, Sky News said on its website, with the chain expected to be run by incumbent HMV executives together with newly-appointed Hilco executives.

As part of the deal, Hilco will acquire about 130 HMV stores and all nine outlets operating under the Fopp brand, Sky News said.

Major music companies and film studios, as well as HMV's landlords are understood to be backing the deal, Sky News said.

Hilco has long been seen as the frontrunner to take control of HMV and the restructuring specialist tightened its grip on the company in January, buying up the 92-year-old group's debt soon after it sought creditor protection.

It has also been appointed to help administrators Deloitte run the business during the administration.

HMV's business of selling CDs, DVDs and video games has struggled in declining markets and amid increasing competition from supermarkets and online retailers such as Amazon.Com Inc.

Hilco and Deloitte could not be reached for comment outside regular business hours.

(Reporting by Abhishek Takle in Bangalore; editing by Andrew Hay)

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Camera retailer Jessops returns for a second shot

By Neil Maidment

LONDON (Reuters) - Britain's squeezed high street will receive a much-needed boost on Thursday when camera specialist Jessops is brought back to life by a well-known entrepreneur less than three months after its collapse.

Peter Jones, whose investments span the food, entertainment and media sectors, will reopen six Jessops stores this week, with up to 30 more opening next month.

The new operation is a far cry from its previous life - a business of 187 stores and more than 1,400 staff, which slammed shut in January after succumbing to declining markets and online competition that has forced fellow British retailers such as Comet and HMV onto the rocks.

In its new, debt-free guise the business will be more competitive on price in the low-margin digital camera market, Jones said, tackling online rivals such as Amazon while also pushing for a bigger share of the high-end camera market.

"We're not going to be coming back into the high street and going back to 200 stores again; those days are over," Jones said. "I don't believe we'll have over 50 stores unless we start to go into Europe, which I wouldn't rule out."

Jones, who becomes chief executive and chairman of Jessops, paid 5 million pounds in January to buy the brand, website and assets from administrators.

He expects to invest up to 5 million pounds more this year on advertising and stores. It is forecasting sales of over 80 million pounds in its first year.

As well as competing on price, Jones said he hopes Jessops' online business, improved customer service, a collect-at-store offering and in-store photo printing kiosks would win back customers.

All manufacturers are on board and in store, he added.

The return of Jessops comes after DVD and games rental company Blockbuster was sold by administrators to restructuring specialist Gordon Brothers Europe on Saturday and will be watched with interest by businesses struggling under the weight of large store portfolios at a time when sales are heading online.

Jones, well known in Britain as an investor in television show Dragons' Den, said that he intends to stay at the helm of Jessops for the foreseeable future, pending his performance.

"If I realise that I'm not any good at it, then I will bring in someone who is better," he said.

(Editing by David Goodman)

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