HMV receiver paid €300k in fees and expenses

Over €300,000 in fees and expenses have been paid to the receiver of HMV Ireland since the Irish arm of the retail music giant went out of business eight months ago.

The payments to appointed receiver David Carson of Deloitte & Touche based at Earlsfort Terrace in Dublin work out at more than €2,300 per working day in the six-month period under review.

According to documents filed with the Companies Office, Mr Carson received €300,495 (excluding Vat) in fees and expenses in the period from when HMV Ireland Ltd went into receivership on Jan 16 to Jul 15.

The music retailer closed with the loss of 300 jobs across 16 shops in January. Hilco is in the process of reopening four HMV stores. The outlets at Henry St and Liffey Valley Shopping Centre in Dublin, and the Crescent Shopping Centre in Limerick reopen this week, with the fourth, in Dundrum, scheduled to open later this month.

The receiver’s extract lodged by Mr Carson shows a list of payments that includes €26,528 to the Sunni Mae Trust.

The money was owed to the trust from the monies raised by the charity single ‘Tiny Dancer’ to fund health expenses for 4-year-old Galway girl Lily Mae Morrison, who is fighting a rare and aggressive form of cancer.

The document shows that €1.18m has been spent in payments in the period, with €487,574 going to former staff.

Staff at two outlets had performed sit-ins last January over concerns they would not be paid wages owed to them. The staff ended their sit-ins after being assured they would receive payment.

Along with the €300,495 paid in the receiver’s fees and expenses, the extract shows that €79,913 has been paid out in legal fees and expenses.

The Vat on receiver and legal fees totalled €87,107. The amount paid out in ‘other professional fees’ totalled €58,917, employee briefing costs were €2,864, while the collection and transport of stock from stores cost €59,470. Some €29,700 was paid for security during the period.

As part of the receivership, €1.35m, has been received in receipts that included €1.13m in pre-liquidation cash receipts and the €170,091 refund of pre-liquidation rent deposit.

Mr Carson confirmed the business realised €37,210 from the sale of an asset.

Mr Carson didn’t put a value on the company’s assets including fixed assets, stock, and cash as the statement of affairs has not been filed in accordance with the Companies Act.