The retailer this week met with its banks to discuss the terms of its loans, as it is widely expected it will breach the terms of its debt covenants in April.

Two options believed to be on the table to reduce HMV's debts, estimated at around £130m, are sell offs of book retailer Waterstone's - which analysts believe could be worth up to £75m - and of HMV Canada.

HMV has already announced plans for 60 store closure across the ...