Hilco UK, the retail restructuring group which has already turned around the fortunes of HMV Canada, is believed to have acquired the debt of HMV UK, giving it control of the company, reports FT.com.

Hilco is said to have acquired debt of £176 million from the retailer's lenders, Lloyds and Royal Band of Scotland. While HMV itself hasn't been acquired, the move does effectively give Hilco total control of the retailer.

The retail restructuring group became the frontrunner on Monday after being appointed to advise Deloitte on keeping the business running. People close to the situation have told FT.com that the acquisition of debt makes for a more stable business, giving Hilco and Deloitte time to move the business forward.

"It takes the panic out of the situation," said one person familiar with the matter.

It remains unclear what will remain of the chain's 230 UK stores. However, the firm has confirmed that it will start accepting gift vouchers again from today.

Source: FT.com