Tag: Hilco

Misco flogged to Hilco

SystemaxGreatAmericanSystemax has offloaded almost all of its Misco-branded European reseller operations to Hilco Capital.

In a statement the company said it had “executed a definitive agreement with a management team backed by Hilco Capital Limited (“Hilco”) to sell all of its unprofitable European Technology Products Group businesses”.

Misco trades in the UK, the Netherlands, Italy, Spain and Sweden. Its French operations, which are doing OK, were not included.

It is still a rumour because a formal announcement of the deal is imminent. Debt restructuring is thought to be involved in the financial make-up of the deal.

Hilco Capital bought music retailer HMV from administration in 2013, and stationery chain Staples.

Misco was a telesales-based IT reseller working for a low margin, high volume market.  However management was too slow to see that sort of operation had the shelf life of mayfly spit. It tried to move to services, but it was too tricky.

Systemax, which owns Misco, has also struggled. It had to close stores in North America, shutter its PC production line and selling the technology reseller subsidiary NATG on to PCM at a loss.

In 2016, the Misco businesses, excluding France, turned over $542.7 million compared to $670.2 million in the prior year. Operating losses, including France, were $1.9 million, versus $2.6 million in 2015.

CEO Larry Reinhold said: “Our France business, which was our largest operation in Europe, is highly successful and has historically operated largely autonomously from our other European operations. It is a well-managed and valuable asset with leading market share, double digit revenue growth and strong bottom-line performance. We believe that we have found a good home for our former colleagues in Europe.

“We thank them for their efforts and wish them the best of luck in their future endeavours.”

The businesses were sold on a cash-free, debt-free basis. Systemax said it would provide transition services to Hilco for a “limited period of time”.

Hilco to cut another 400 jobs at HMV

hmv-administrationHilco, the new owner of HMV, is planning to cut 400 jobs at the troubled entertainment retailer. The Times reports that Hilco is looking to save as much as £7.8 million from its annual payroll and the latest round of cuts is just one in a series of cost cutting measures.

An internal memo to HMV staff listed the positions earmarked for layoffs. Although Hilco did not say exactly how many jobs will be cut, the memo states that three positions in most of HMV’s remaining 141 stores will go, which amounts to about 400.

Security guards will be among those dropped in nearly all stores, except those in “high risk” areas. Cashiers in more than 100 stores will also lose their jobs, along with supervisors. It seems that part-time staff will eventually account for about 50 percent of HMV’s total workforce.

Hilco scooped up HMV earlier this year and it apparently plans to focus its revival efforts on 141 stores, employing around 2,500 souls. However, the future of dozens of stores across the country has already been sealed.

HMV to be aquired by Hilco

hmv-administrationTroubled HMV has grabbed a lifeline from Hilco buying it out.

The store, which went into administration earlier this year, putting thousands of jobs at risk, has been rescued by specialist restructuring firm Hilco in what is believed to be a £50 million deal.

Hilco now has 132 HMV stores, and nine branches of the Fopp chain. It is expected up to 2,500 jobs could be saved.

The chain is expected to be run by a combination of HMV and newly-appointed Hilco executives, while suppliers are also rumoured to have gone running back to the company offering new terms and given a positive nod to the deal.

HMV could be in safer hands with Hilco already having experience with the brand in Canada, which it bought two years ago.

The purchase rumours emerged a after Jessops was saved by Peter Jones.