The high street music retailer is meeting with banks, including Lloyds and RBS, on a weekly basis as it tries to renegotiate the terms of its loan. It is also taking debt advice from consultancies KPMG and Deloitte.

Although the banks have extended HMV's debt facility, the national chain is still expected to breach its covenant which specifies that its earnings before interest, taxes, depreciation and amortization must be higher than its rent bill, when it comes through in April. ...