Restructuring specialists Hilco have gained effective control of HMV after buying its debt.

The stricken music retailer was plunged into administration last week (January 15) after failing to secure funding to pay off its estimated £176m debt.

Administrators Deloitte had previously revealed that they had a number of parties expressing their interest in purchasing the company.

The BBC now reports that Hilco, who own HMV Canada, have agreed a deal to buy the debt of HMV UK - meaning that they gain effective control of the company.

As previously reported, Deloitte yesterday (January 21) performed a U-turn on HMV gift vouchers, which are now allowed to be redeemed.