HMV is on the verge of collapse as it prepares to officially appoint Deloitte as administrator. With a strong brand and a lot of good will among the public and suppliers for the retailer, there is a chance the business could be bought out of administration in some form. Retail Week takes a look at the likely options on the table for administrator Deloitte.

Hilco

The restructuring firm that acquired HMV’s Canadian business in 2011 is thought to be interested in the UK arm, as revealed by Retail-week.com on Monday. But it would face very different pressures in the UK than Canada, where consumers have not migrated as quickly to digital entertainment formats as they have here. Hilco is understood to be keen to keep the business going, and is likely to take on only some of the stores and undertake a dramatic restructuring.

GA Europe

Hilco’s rival restructuring firm is likely to take a look at HMV too. GA Europe acquired footwear business Shoon out of administration last year. It has been at the centre of many retail restructurings in recent years, and tried to buy greetings card chain Birthdays last year. It has also run the Closing Down sales of many bust retailers, including Comet and TJ Hughes.

Endless

Leeds-based turnaround group Endless is said to be interested in the entertainment specialist. The private equity firm bought Bathstore for £15m in cash last May and plan to invest £11m in new equity capital into the bathroom retailer. The firm also owns The Works which enjoyed a strong Christmas, and Endless may be looking to extend its retail interests.

OpCapita

After its controversial exit from Comet, the private investment firm may swoop for a swathe of HMV stores after picking up the rump of fellow entertainment specialist Game’s business last year. However, managing partner Henry Jackson may look to keep a low profile after being vilified over the controversial collapse of Comet.

Liquidation

Unfortunately for staff, liquidation is also an option for HMV. As in the case of JJB last year, a piecemeal sell off of HMV’s 240 store estate would then commence. A number of retailers with a stated ambition to increase their high street portfolio - including both value retailers and those looking for high profile stores, most notably its Oxford Street flagship - will be interested. However, with Jessops and JJB high street stores recently released into the market, demand for many of the shops may be lacklustre. Its seven Fopp stores – largely run as a separate entity – may also appeal to a potential buyer.

Online only

HMV could also end up operating solely as an online business in a similar vein to former rival Zavvi, MFI and Woolworths if its name and domain are purchased. A new owner may be able to use brand heritage and existing supply links to continue trading. With former online rival Play.com exiting the market in March, there may be some market share to gain.

However, the brand name will have suffered from the associations of the administration, and competition with Amazon will remain extremely difficult.