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p2 ➤

Middleport opens to public

Strong performance by HMV

Q2 2014

His Royal Highness The Prince of Wales officially

opened the Middleport Pottery visitor attraction in

June, following the completion of a three year, £9

million restoration of the Grade II* listed site by the

Prince’s Regeneration Trust.

Middleport is the last working Victorian pottery and is

home to the world-renowned Burleigh pottery, sales

of which have doubled under Denby’s ownership.

To this day, all of Burleigh’s sought-after products

are made at Middleport Pottery using the original

equipment and techniques. The visitor attraction

includes the famous bottle kiln (pictured) which is

synonymous with Staffordshire’s industrial heritage.

Middleport has been listed by the Daily Telegraph as

“one of Britain’s best historical attractions” to visit.

HMV UK, HMV Canada and HMV Ireland all

reported strong sales and market share growth in

the second quarter, outperforming the market for

physical entertainment media in their respective

territories. The resurgent retailer has focused on

offering greater depth of range

than the supermarkets at prices

that compete head on with

both the grocers and Amazon

while dramatically increasing

the number of in-store events

in order to play to its strengths

as a high street retailer in a way

that supermarkets and online

operators are unable to compete

with. The 12 months since the

hmvlive programme kicked off in June 2013 have

seen over 250 big name performances and signings

in HMV stores, in addition to numerous events with

local bands, arranged directly by store managers,

and up-and-coming acts in Ireland organised

Hilco Capital’s retail team was

appointed by Deloitte, the

administrators of soft furnishings

retailer Paul Simon, in May to

assist with the operation of the

stores during the administration.

Paul Simon was founded as a

single store in East Ham in 1993

by Paul Ludwin, Irwin Simon and

Harveys founder Harvey Gilbert,

reaching 51 stores at its peak.

Drawing on previous experience

of unwinding complex customer

order books, Hilco’s team was

able to arrange for several

thousand outstanding customer

orders that had been placed

prior to the administration to be

fulfilled directly by the stores.

Although a buyer was not found

for the Paul Simon business in

its entirety, a number of stores

were sold on a going concern

basis to other retailers in the soft

furnishings sector, preserving the

jobs of the store staff.

Bridge over troubled water for Paul Simon stores

2 Hilco Capital Newsletter Q2 2014 www.hilcocapital.com

Newsletter

➤p1Xtra-vision pass with flying colours

Xtra-vision’s Rental Pass, which

launched in January, hit a new

milestone with 150,000 passes

sold in the second quarter of

2014. The ‘all you can eat’

service lets customers rent an

unlimited number of DVDs and

games in a set period of time,

from the seven day Bronze pass

to the newly launched three

month Platinum Pass.

The Dublin-based entertainment

specialist also launched a free

weekly digital magazine which

has already become the number

one publication for films and

music on Apple’s iOS Newsstand

in Ireland, ahead of established

rivals. XV Magazine is available

for iPhone and iPad and is

completely written and produced

in-house. With subscriber

numbers growing, the magazine

is set to become a profit centre

for the business through the

recruitment of third party

advertisers. An Android version is

in development to launch in Q4.

Bronze PassBronze PassBronze PassBronze PassBronze PassBronze PassBronze PassBronze PassBronze PassBronze PassBronze PassBronze PassBronze PassBronze PassBronze Pass

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MOVIES AND GAMESMOVIES AND GAMESMOVIES AND GAMESMOVIES AND GAMESMOVIES AND GAMESMOVIES AND GAMES

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Xtra-vision.ieXtra-vision.ieXtra-vision.ieXtra-vision.ieXtra-vision.ieXtra-vision.ieXtra-vision.ieXtra-vision.ieXtra-vision.ieXtra-vision.ieXtra-vision.ieXtra-vision.ie

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YOUR PASSto Movies and Games for the

perfect Summer

Terms and conditions apply. Up to two rentals per transaction only. Rental is for one night only and for Platinum Pass rental is for 2 nights only. Normal rental terms and conditions apply. Offer applies to new release, back catalogue, kids catalogue and game rental only. Offer is not valid in conjunction with any other offer. Gold Pass is valid for 30 days from time of purchase, Silver Pass is valid for 14 days from time of purchase, Bronze Pass is valid for 7 days from time of purchase, Platinum Pass is valid for 90 days from time of purchase. Offer not available in Xtra-vision vending machine.

in partnership with the government-backed

First Music Contact scheme which includes

The Strypes and Kodaline among its most successful

alumni.

While in-store performances by the likes of Ed

Sheeran, Kasabian (pictured) and 5 Seconds of

Summer (pictured, front cover) have grabbed the

headlines, the company is now working to increase

the number of PAs and events from the worlds of

games, TV and films – which have already seen

talent as diverse as Edgar Wright, Richard Dawkins

and UFC fighters draw large crowds – with some

major announcements due in the Autumn.

Awards Season

The re-energised HMV was the recipient of several

awards and nominations in the second quarter.

In the UK, HMV was awarded Retail Brand of the

Year by Music Week, beating off tough competition

from Amazon, iTunes, Spotify and Rough Trade.

The retailer’s UK marketing initiatives were also

recognised with the extremely successful Decades

campaign winning the BVA’s award for Retail

Marketing Initiative of the Year.

In Canada, HMV won the CMBI’s award for Retail

Chain of the Year and has been nominated for the

CCMA’s Retailer of the Year award while in Ireland

HMV has been nominated for the Allianz Business

to Arts award in recognition of its partnership with

First Music Contact in the Best Large Sponsorship

category which also includes Google and Sky.

As well as gaining recognition from trade bodies and

publications, consumer magazines have also been

supportive of HMV with ShortList including the 363

Oxford Street store in its list of the Coolest Record

Stores in the UK in June and Hot Press listing the

new Grafton Street store as one of Dublin’s best

music stores. Meanwhile, HMV’s much loved

mascot, Nipper, was awarded second place in Time

Out’s list of London’s Top Ten Dogs, beating such

notable canines as the Queen’s corgis and unwitting

YouTube star, Fenton.

Irish Comeback

New store openings in Ireland, including a flagship

store on Dublin’s prestigious Grafton Street

(pictured, below) in April, took the total estate in

Ireland to eight standalone stores and 46 dual-

branded HMV/Xtra-vision stores by the end of July,

with more stores set to open in the third quarter. To

date, 200 jobs have been created in Ireland as the

business has been rebuilt from scratch following the

closure of all the stores by the Receivers of the old

company in April 2013.

In addition to the First Music Contact partnership,

HMV Ireland has signed sponsorship deals with a

number of festivals in order to re-establish the

brand in the Irish market and cement HMV’s position

as Ireland’s Home of Entertainment. Sponsored

events include the Galway Film Fleadh and the

Indiependence Music & Arts Festival in Cork.

www.hilcocapital.com Hilco Capital Newsletter Q2 2014 3

Newsletter

Denby production hits record high

Kraus rolls out carpets across the US

Fast response key to Hilco Property success

Denby reached its highest production output in

ten years in the second quarter as demand for its

eponymous stoneware soared around the world.

Export sales to South Korea are up 189% for the

first half of 2014 and Denby has been introduced

to India, Russia, Brazil and Mongolia, leading the

company to expand the workforce at its Derbyshire

factory with the creation of 37 new jobs.

Since its acquisition by Hilco Capital in 2009, Denby

has gone on to acquire several other heritage

potteries, all of which are flourishing as part of Denby

Holdings. Burleigh and Poole Pottery were both

commissioned by John Lewis to create exclusive

ranges for the retailer’s 150 year anniversary

(Burleigh’s Charlotte range for John Lewis 150

Years pictured, right). Additionally, John Lewis has

The Hilco Property team

continued to manage the ongoing

‘right sizing’ of HMV UK’s store

portfolio with a further five store

relocations completed between

April and July. Hilco Property

provides a turnkey service to

the retailer, managing the

process from existing site review

and new site identification to

lease negotiation and project

management of store fit-outs.

The team’s unrivalled ability to

deliver store fit-out projects in

record time has been crucial to

the success of the programme.

In the case of the Nottingham

Fopp store, Heads of Terms

were agreed two weeks after

an initial meeting with shopping

centre operator INTU to discuss

requirements. The lease was

signed a week later and the new

unit was fitted out and opened

for trade just six days later,

minimising lost trade between

the old site closing and the new

store opening to just one day,

all in the same week that Hilco

Property completed two other

store relocations for HMV.

Kraus Group reached a record production level in

May as the flooring manufacturer introduced 26 new

ranges into almost 2,000 Home Depot stores across

the USA in one of the largest product launches in the

sponsored a Burleigh apprentice for a year.

Hilco Capital appointed Cannacord Genuity to

pursue possible sale options for Denby Holdings

and the process has already attracted considerable

interest from private equity and trade buyers, both in

the UK and overseas.

company’s 55-year history.

Kraus also celebrated receiving the Region of

Waterloo’s Water Efficiency Excellence award in

recognition of the 66 million litres of water that the

company’s manufacturing facility is saving each

year as part of an energy and water reduction

programme led by Hilco’s manufacturing team.

Hilco’s specialists worked with the site’s engineering

manager to devise a creative, low cost water

recycling unit.

4 Hilco Capital Newsletter Q2 2014 www.hilcocapital.com

Newsletter

Published by Hilco Capital Limited, 80 New Bond Street, London W1S 1SB · Tel (0) 207 317 2050 · Fax (0) 207 317 2051 · © 2014 Hilco Capital Limited · All rights reserved © 2014 Hilco Capital Limited All rights reserved

NEWSFROM

ACROSSTHE POND

Polaroid, a brand owned by Hilco Brands, opened the Polaroid Museum and Fotobar in Las Vegas, Nevada in April. The museum includes an exhibition of Andy Warhol’s most famous Polaroid photographs together with Warhol’s personal Polaroid cameras. The opening event featured a host of Polaroid aficionados including photographers Marc Serota, Tima Mantoani and Maripol with entertainment from illusionists Penn & Teller.

Hilco Merchant Resources received bankruptcy court approval to be retained by women’s clothing retailer, Coldwater Creek, to conduct going-out-of-business sales at more than 370 stores, beginning in May.

Hilco Fixed Asset Recovery was appointed by Target to liquidate the furniture, fixtures and equipment in a further eight Target stores in May, having recently been awarded a one year service agreement extension to provide disposition services to the supermarket chain.

Hilco Streambank was retained as the Trustee’s exclusive agent to market and sell the intangible asset portfolio of the Good Books Publishing House, including the goodbooks.com domain.

Hilco Real Estate has been appointed to sell the iconic Charlie Chaplin Theater building in the desirable Edgewater Glen neighbourhood of Chicago. The 12,000 sq ft building has been fully renovated to create an expansive gallery spread across two floors with a two storey atrium entrance.

Spirit of Rio reaches London

HMV Football Extravaganza back for 2014

Hilco Capital threw open the

doors of 363, the events space at

HMV’s London flagship store, to

120 guests for a VIP screening of

England taking on Uruguay in the

first stage of the World Cup.

While the final score wasn’t in

England’s favour, a samba band

and dancers, together with

a steady flow of Caipirinhas,

ensured that the party spirit of

Brazil reached Oxford Street.

The HMV Football Extravaganza

announced that Ryan Giggs will

be presented with the Legend

of Football award at this year’s

event.

Now in its 19th year, the HMV

Football Extravaganza has

raised over £6 million for charity

Nordoff Robbins and continues to

raise essential funds to provide

much-needed music therapy for

vulnerable and isolated people

across the UK.

The event takes place

on 14 October at the

London Hilton Park Lane

and will be attended by a

host of football greats for

a fantastic and unique

night of football and fund

raising.

To book a table at this

prestigious event or for

further details, please

contact Rae Peal:

Rae@TheFE.co.uk

Big news for Twice2much

Twice2much completed a

full accounts payable review

for broadcasting giant Turner

Broadcasting System across its

operations in EMEA and Russia in

the second quarter. The company,

which was founded in 1970 by

Ted Turner, operates more than

100 branded TV channels across

the world, including CNN, Cartoon

Network, and TNT.

Back in the UK, Twice2much

was engaged by disability charity

Scope UK to carry out a full

duplicate payments review.