Equity firm buys HMV's debt

HMV administrators announced they have sold their majority shareholding in entertainment and music venue company, G-A-Y Group.

G-A-Y was the only remaining venue businesses owned by HMV, comprising the G-A-Y bars and Heaven nightclubs.

It was sold to Jeremy Joseph, founder, and other shareholder in the group. Mr Joseph said:

HMV's administrators Deloitte have issued an update on the state of the troubled retailer:

Joint Administrators to HMV have confirmed that gift cards can be redeemed in stores from Tuesday.

They also confirmed that proceeds raised by HMV through the sale of charity releases, including the Hillsborough Justice Collective single, will be paid in full as soon as possible.

Joint Administrator Nick Edwards added:

Entertainment powerhouses Universal Music, Warner Music and Sony are reportedly planning to woo would-be buyers to HMV with generous credit terms and cut-price CDs and DVDs.

The companies fear the collapse of the retailer will increase pressure on the entertainment industries as supermarkets and online firms such as Amazon compete to slash prices, The Sunday Times (£) reported.

Turnaround group Hilco - which owns HMV Canada - is thought to be among the favourites to rescue the 92-year-old retailer and is said to have been in talks with administrators Deloitte.

More than 4,120 jobs and 223 stores are currently at risk after the retailers called in administrators last week.

Financial services firm Deloitte, joint administrators to HMV, said they are looking into concerns that money made on a Hillsborough charity single is paid to the families.

• Earlier: MP Steve Rotherham asks HMV to ensure Hillsborough single cash gets to families

An MP has contacted the HMV administrator to ask it to ensure that all money made on a charity single in aid of the Hillsborough families is paid to them.

Liverpool Walton MP Steve Rotheram has contacted Deloitte, the administrator brought in by HMV earlier this week, to ensure that all money made on the sale of the Justice Collective's Christmas single is paid to the families.

The proceeds of the sale of the single, which was Christmas number one, is for the families' continued fight for justice for the 96 victims of the Hillsborough disaster in 1989.

Mr Rotheram said HMV was "first class" in the way it promoted and sold the single over the Christmas period and hosted the launch in its Liverpool store.

Administrator Deloitte says there have been over 50 expressions of interest from potential buyers of HMV.

A large amount of that interest is from private equity funds.

• More on HMV in adminstration

HMV Ireland has been put into receivership just days after administrators were brought in to help the British section of the music retailer.

Accountancy firm Deloitte has been appointed to take control of assets linked to 16 stores operated by the company in Ireland, which were closed today.

Deloitte said in a statement: "This follows a request from the directors of the company to the banks to appoint a receiver.

"The company's stores have been closed by its directors. The receiver will institute an assessment of the viability of the company and its cost structure, including property occupational costs. All efforts will be made by the receiver to secure a purchaser for the stores."

HMV employs 300 people in Ireland and about 4,000 in the UK.