Struggling entertainment chain HMV could be on the verge of being rescued by Hilco, a restructuring firm according to the Financial Times.

Hilco currently own the Canadian branch of HMV and are currently in talks with HMV’s administrators Deloitte to come to a complicated agreement to save the chain.

The Financial Times claims that “people familiar with the situation” have told them that Hilco has bought HMV’s £176 million debt in an agreement with HMV’s lenders Lloyds and Royal Bank of Scotland.

They are currently in talks with HMV’s administrators to come to an agreement that would mean that all 229 HMV stores in the UK would continue trading.

If it comes through, HMV would remain in administration but Hilco and Deloitte would work together to determine how the business should be run.

HMV announced that they were going back on their decision not to accept gift cards and that they would be honouring them.

One of the administrators in charge, Nick Edwards said: "I am pleased to confirm that, having concluded this assessment, we are able to honour gift cards. I can also confirm that all money raised by HMV for various charities will be paid in full.

"We recognise that both of these matters have caused concern for individuals and organisations affected and are pleased to have reached a positive outcome.

"We will continue to assess the longer term options for the business whilst continuing to trade. I am hopeful this process will result in the business continuing as a going concern."

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