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.
More top news
Survivors of the Florida high school massacre have delivered emotional pleas to Donald Trump in a sit-down session with the president.
Freezing with some fog patches tonight
Families torn apart when so-called Islamic State militants abducted their their young daughters are slowly being reunited.