HMV's new boss today warned the entertainment group is in talks with banks over its future following worse-than-expected trading in the run-up to Christmas.
Chief executive Trevor Moore warned that current market conditions suggest the group will not meet expectations for the year to April.
As a result, the terms of its bank loans are not likely to be met in January and April, placing the future of the 238-strong chain under threat.
Like-for-like sales fell 10.2% in the six months to October 27 as its pre-tax loss narrowed to £36.1 million, compared to £50.1 million the previous year.
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