Hilco Providing Retail Support To

Newsletter Q2 2016

Hilco providing retail support to BHS Tilley supports Run Rwanda team with operational support at the BHS head office and in the stores during the store closure process.

Hilco Retail Services is assisting the Administrator in extending the viable trading period of the store network in order to provide the opportunity to realise the maximum returns for the Tilley has provided its classic retailer’s creditors. hats to British endurance athlete, John Gunn (pictured), Hilco Capital’s Retail Services team was appointed The appointment draws on Hilco Capital’s extensive and his team as they tackle a by the Administrator of BHS in June to assist in experience of managing the operation of large gruelling 211 mile run across the operation of 163 BHS stores. Hilco’s team, scale retail businesses for retailers and insolvency the entire country of Rwanda. which is the largest provider of these specialist practitioners in the UK and across continental The Run Rwanda team’s Tilley services in Europe, is providing the Administrator Europe in both solvent and insolvent situations. hats will protect their heads from 98% of the sun’s harmful rays during their month-long journey New HMV finance secured Chapelle named Deal of the Year through the ‘land of a thousand hills’. For more information, visit After a successful tender process, Hilco Capital runrwanda.com. refinanced its working capital facility into the HMV group with PNC Business Credit. Back at Tilley’s Canadian HQ, a redoubled focus on its Following the recent strong trading results of the ecommerce operations delivered HMV group and utilising an asset based lending the company’s strongest ever structure, PNC was able to provide a facility of £32 month for web sales. June is million, which largely replaced the existing Hilco traditionally Tilley’s biggest Capital facilities. Hilco Capital’s acquisition of retailer, Chapelle month – its equivalent of the Jewellery, was awarded SME Deal of the Year at the festive season – as the start of Recognising the strength of the brand, the East Midlands Dealmakers Awards in May. summer and Father’s Day drive management team and its investors, the facility demand for its products. This provides the necessary flexibility to the HMV group to The largest UK retail jeweller operating in the outlet year, improved digital marketing continue to grow market share across the 128 store sector, Chapelle trades in virtually all of the UK’s and CRM delivered a 14% year- portfolio and expand the new physical ecommerce prime designer retail outlet villages and online. Hilco on-year increase in web sales for business and digital operations. Capital acquired the business in June 2015. the month of June.

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HMV Digital forges brand Koreans bowled over by Denby partnerships they like to mix and match our colourways – the more formal ornate ware used by their parents and ancestors has gone out of fashion.”

The company’s experience in Korea has already borne fruit back home with the HMV Digital, the entertainment introduction to the UK market retailer’s digital music service, of 250 new bowls originally has formed partnerships with a designed for Denby’s South number of high profile brands. Korean customers. The move Designed to drive awareness Denby Pottery formally opened puts Denby at the forefront of the and user acquisition, the UK and its new Korean base in the heart ‘bowl food revolution’ which has Ireland partnership programme of Seoul’s fashionable Gangnam been gripping British consumers includes activity with Caffè Nero, district in May. The new office, which employs 16 this year as part of a wider trend of casual dining McDonalds, Money Supermarket, South Korean nationals, was officially launched at a and relaxed entertaining. Halifax and South Eastern Trains. press conference at La Casa hotel. Speaking on Channel 4’s ‘What Britain Buys’, The brand is enjoying huge success in the country Denby’s Nicola Wilson (pictured) explained, “We’re where it has been embraced by younger consumers really starting to see a trend in the UK for using looking for stylish informality. According to Denby’s bowls in the home over plates and this has been Managing Director, Sebastian Lazell, “Denby is fairly recent. We now produce a lot more bowl appealing to people in South Korea who particularly shapes than we did; it’s now totalling about 32 like the premium casual look of Denby glazes and different bowl shapes.”

Hilco team relaunches ex-Co-op stores

Additionally, HMV Digital has The demanding rollout schedule sees seven store teamed up with eight music conversions each week over a four week period. festivals throughout the UK as part of a summer promotional The stores were acquired from the Co-operative programme. Nile Rodgers’ FOLD Group with all staff transferring to the new business. festival, Kendal Calling, LeeFest Presents the Neverland, Electric Fields, Blue Dot, Caught by the River Thames, Sundown and 1234 festivals have all signed Hilco’s Food Retailer Group kicked off the conversion up to promote the HMV Digital of 36 former Co-operative Food stores to Budgens in service to festival goers both ‘on June. The team worked in partnership with Booker the ground’ and through their Group to re-stock and relaunch the first eight stores digital channels. under Booker’s Budgens fascia in a single week.

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Hilco brings digital HMV wins vinyl spin battle expertise in-house

HMV topped off a successful quarter which saw the times the market share of Sainsbury’s from a range The newest addition to the retailer win industry awards from Music Week and of up to 1,500 records in each of our 128 stores.” Hilco Capital group, Hilco Web, the British Video Association by winning a tongue- provides ecommerce and digital in-cheek war of words with supermarket giant The light hearted spat marketing expertise to both Sainsbury’s. The row erupted as the grocer, came as HMV launched internal and external clients. which is Britain’s second largest retailer, Vinyl Week, an LP-themed claimed in its first quarter trading report to be promotion for Father’s “the biggest vinyl retailer on the high street” Day. The promotion with “eight percent market share”. included a raft of HMV- exclusive pressings of HMV pointed out: “For the classic albums as well record HMV sell more Orange as a limited Nipper edition Juice, Meatloaf, Cream, and Crosley Cruiser turntable The team already has over Jam than Sainsbury’s! We (pictured). 40 digital optimisation and also have some Smashing Pumpkins… development projects in HMV is on track to sell 1.5 million LPs in 2016, its progress, ranging from digital “When it comes to vinyl sales HMV have over four biggest year for vinyl sales since 1997. marketing optimisation for Tilley to the creation of a professionally written digital magazine for HMV Pure wins industry award Kraus secures additional Canada (pictured). funding with Wells Fargo

PureHMV beat off competition from across the world to win Best Loyalty Programme of the Year – Retail (Non Food) for the second year running. In addition to larger assignments, The ceremony at The Pavilion in the grounds of the Wells Fargo Capital Finance has made an additional the team is on hand to support Tower of London was attended by entrants from $20 million available to Kraus Group, taking the Hilco’s investments with digital businesses including Carrefour, Vodafone, Shell and flooring manufacturer and distributor’s total facility training and advice, including Subway, together with loyalty service giants Aimia, up to $70 million. Google Analytics, affiliate Avios and Nectar. marketing, social media and The additional funding comes on the back of more. PureHMV triumphed in its category over Germany’s another strong first half performance at Kraus which 15,000-store REWE supermarket chain and has seen revenues rise by 11% and EBITDA by 54% Fore more information, contact: Denmark’s largest retailer, Danske Supermarket. year-on-year. [email protected] www.hilcocapital.com Hilco Capital Newsletter Q2 2016 3 Newsletter

Team Hilco beats fundraising target NEWS

dash to the hills from the Olympic Park, with FROM Mr Holt setting a fine pace through London, ACROSS whilst indulging in an experiment to see if THE POND we could set off the speed cameras.

Hilco Industrial completed the “A brief detour was made through some sale of the assets of S&S Steel suburban streets to avoid a major incident in April. Sales from the auction and then into the Surrey Hills with Mr O’Neill of the Anderson, Indiana-based steel mill’s property exceeded flying up Newlands and Leith. expectations.

“A series of rapid descents followed, with Mr Hilco Brands has worked with Altec Lansing to produce Emmott doing his best to disprove Newton’s a consumer electronics range At the time of going to press, Hilco Capital’s Chris theory about heavy things descending at the same fronted by singer and actor Nick Emmott, Mark O’Neill and Matt Holt had just pace as lighter objects. 70 miles in, the team dug Jonas. The range of headphones and speakers was launched at a completed the gruelling Prudential RideLondon 100 deep and ascended Box Hill, before the sprint to the high profile event in New York and in aid of Children With Cancer UK. Mall.” is due in stores in Q4.

Team Captain Chris Emmott commented: “So we Thanks to everyone who helped the team smash Hilco Merchant Resources began store closing sales at made it, all 100 miles done. The day started with a their fundraising target of £6,000. 47 Sport Chalet stores across California, Arizona and Nevada. Over $130 million of sporting goods will be liquidated. Legends of Football 2016 announced Hilco Real Estate acquired the site of a former Exelon power generation facility in Boston. The The HMV Football Extravaganza has long been the team has begun the planning hottest ticket in the football fundraising calendar and process at the 15-acre site. the event is back for 2016 with a twist. Renamed s Legend of Hilco Global-owned fashion Legends of Football, this year the HMV-sponsored brand, Haute Hippie, partnered event celebrates 25 seasons of The Premier League with upscale department store, and the winner of the prestigious Legend of Football supported by Neiman Marcus, on an Instagram (Formerly the Football Extravaganza) campaign at this year’s Coachella. Award won’t be revealed until the night. The activity, facilitated by Hilco’s WEDNESDAY 5TH OCTOBER 2016 Polaroid team, saw 12 influential GROSVENOR HOUSE HOTEL The award will go to one of the ‘100 Club’ of players “The greatest night of football style bloggers outfitted in Haute and fundraising in the calendar.” Hippie for the music festival. who have scored over 100 Premier League Goals. Celebrate 25 Seasons of The Premier League, and relive the most memorable moments and goals with some of the games’ greatest legends and goal scorers. Be part of Contenders who will be attending on the night this amazing event where we will present the Legend of Football Award to one of the elite group of players to Hilco Global was appointed have scored over 100 Premier League goals. include Alan Shearer, Michael Owen, Andrew Cole, Players joining us on the night from the ‘100 Club’ by West Ham United FC to include Alan Shearer, Michael Owen, Andrew Cole, Jermaine Defoe and Matt Le Tissier, as well as many auction more than 200 items more players and managers from the beautiful game. Jermaine Defoe and Matt Le Tissier. your table: For further details and to book of memorabilia from the club’s [email protected] former stadium. Lots included

For more information or to book a table at the event, LOFOOTBALL.CO.UKLOFOOTBALL everything from goalposts to the LEGENDS OF FOOTBALL which raises funds for Nordoff Robbins, please visit toilet cubicle doors. West Ham moved to the Queen Elizabeth lofootball.co.uk or email: Olympic Park in June. [email protected]

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