Asda quiet on rumours it is in talks to rescue troubled HMV

The 92-year-old firm was forced to appoint Deloitte to find a buyer for all or parts of the business in January, after succumbing to a decline in CD, DVD and video game markets as well as increasing competition from supermarkets and online rivals.

Reports suggested that Asda is keen to buy the HMV brand and use its American parent Wal-Mart’s huge buying power to sell DVDs and CDs cheaply on the high street.

Such a move would be a radical departure for Leeds-based Asda, which is focused on the Asda brand in groceries and the George brand in clothing.

Deloitte is pushing to secure a rescue deal for the firm before a big quarterly rent bill becomes due at the end of March.

Deloitte refused to comment, but it is understood to be in discussions with a number of parties.

It has already announced around 100 store closures and has sold HMV’s operations in Hong Kong and Singapore, putting more than 1,700 of the group’s 4,000-strong workforce at risk. It hopes to save some or all of the remaining 116 stores.

Restructuring specialist and HMV debt holder Hilco is the frontrunner to buy the stores. Hilco, which declined to comment, bought HMV’s debt in January, giving it a big say in the fate of the group. It has a strong relationship with music labels and film studios through its HMV Canada business, which it bought in 2011.

HMV’s collapse has prompted retailer WH Smith to start selling DVDs and CDs in its high street stores having pulled out of the business several years ago.