Newcastle United owner Mike Ashley eyes HMV rescue deal

Billionaire Mike Ashley is reportedly looking to buy HMV.

The struggling entertainment retailer went under last month, putting the jobs of 2,200 staff across 125 stores on the line.

Administrator KPMG set the deadline for a rescue deal at January 15, and the owner of Sports Direct and Newcastle United is believed to have placed a bid to acquire the music chain.

Mr Ashley, who owns a 61.7% stake in Sports Direct, has previously used the company to buy flagging high street chains, including bike shop Evans Cycles and department store chain House of Fraser, which was snapped up last August for £90m.

Sports Direct International plc, headquartered in Derbyshire, also holds stakes in Debenhams and French Connection.

KPMG revealed on Wednesday that “a number of offers” had been made “on various bases”, although it declined to reveal the identity of the bidders.

Joint administrator Will Wright, a partner at the professional services firm, said they would be evaluating the bids further over the coming days, adding: “We will continue to endeavour to trade all stores while discussions with all the relevant stakeholders continue.”