High street retailer HMV is said to be on the brink of collapse for the second time in six years.
More than 2,200 jobs could be at risk as the CD, DVD and games store is set to fall into administration after bosses filed a notice of intention last week.
The retailer was reportedly looking to appoint administrators last week, after a report revealed sales were down by £23.6 million in 2017, in comparison to the previous year.
HMV, which has 128 stores across the UK, as well as online sales, is the first retailer to fall victim of the struggling British high street after Christmas.
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According to Sky News, HMV bosses have been in last minute talks with high-profile figures in the music industry in a bid to try and avoid collapsing.
HMV previously went into administration in 2013, before it was bought by Hilco, which also owns Homebase, therefore acquiring HMV's £50 million debt.
After taking on the retailer, HMV relaunched its website in 2013 to put emphasis on its online sales in a bid to claw back some of its debt.
In October, HMV even beat Amazon to be the biggest seller of physical music, with bosses revealing its website was also competing with the online giant for the biggest sales of vinyl and mail orders.
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Despite this, the brand suffered a 22 per cent dip in physical album sales earlier in the year, prompting profits to slip by £7 million.
Insiders have blamed soaring business rates and high street leases for the retailer's decline in revenue and profits.
If HMV collapses, it'll have a huge effect on the music industry, which relies on the brand for sales of physical CDs, records and DVDs.
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Despite a decline in sales, HMV remains the biggest entertainment retailer still on the high street.
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