Could Major Labels Save HMV?

Universal Music, Warner Music and Sony take action

Major record labels could be set to offer HMV a new deal in order to aid the struggling high street retailer.

It's been a difficult week for the British high street. Movie rental service Blockbuster has entered severe difficulty, while HMV underwent the process of administration.

Finance firm Deloitte have taken on the running of all shops in the UK and Ireland, with the aim of providing the chain with a means of continuing trading. The move will effect all corners of the music industry, with the major labels set to take action.

The Sunday Times reports that Universal Music, Warner Music and Sony are set to offer HMV a new package – including generous credit terms and a reduced rate on product – in order to get the retailer back on its feet.

According to the newspaper a source close to the labels said: "They don’t want their only choice to be Tesco or Amazon".

Elsewhere, GAME are reportedly interested in buying all or part of the chain. The brand could take ownership of up to fifty shops, while Deloitte have revealed that they have received more than fifty enquires about the purchase of the struggling retailer.

Finally, staff in two Irish stores are staging a sit in protest to receive unpaid wages. Shops in Tallaght and Cork have been effected, with dialogue said to be ongoing between the chain and the workers.

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