HMV: Labels And Studios 'Give Hope Of Rescue'

Music labels and film studios are reportedly planning to throw their weight behind a rescue deal for the collapsed retailer HMV.

Entertainment giants including Universal Music, Warner Music and Sony are apparently considering offering suitors generous credit terms and cutting the price of CDs and DVDs to help keep HMV's presence on the high street.

According to The Sunday Times, the companies are fearful that the demise of HMV will lead to even more pressures on the industry as supermarkets and online firms, such as Amazon, compete to slash prices.

It is thought turnaround group Hilco - which already owns HMV Canada - is among the favourites to rescue HMV and is said to have been locked in talks with administrators Deloitte on Friday.

At stake is the group's 92-year-old heritage, more than 4,120 jobs and 223 stores.

There are reportedly around 50 potential suitors circling HMV, and the company's chief executive, Trevor Moore, has said he is "convinced" that the chain's future can be secured.

Game, which was bought out of administration itself last April, has confirmed it is interested in buying stores.

It did not reveal how many shops it was looking at acquiring, but reports suggest it could bid for up to 45 in locations where it does not yet have a presence.

Hilco has already helped turn around sales at HMV's Canadian arm since it bought the business in 2011.

Support from suppliers would be crucial to a revival of HMV to fight against the might of supermarkets and internet rivals.

HMV bosses last week praised the "amazing support" of suppliers, which came to HMV's rescue in January 2011 with a deal which helped the retailer shed some of its debt.