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HMV suffers £37 million loss

HMV has seen its share price drop by 37 per cent after reporting a first half loss of £37.3 million - an improvement from £48.1 million it lost last year.

The high street retailer has said that weak market conditions created “material uncertainties” which may result in a breach of its bank covenants. HMV is currently undergoing “constructive discussions” with its eight lending banks to remedy the situation, as it hopes that a productive holiday period can aid it in meeting its January fiscal deadline.

"Christmas gets later every year, people are also in search of the promotional offer and being very careful about where they spend their money," HMV chief executive Trevor Moore told Reuters.

"There are still 12 critically important trading days until Christmas and being on the high street (town centre), if things do come late, is absolutely to our advantage because that's where the footfall will be. That Friday, Saturday, Sunday and Christmas Eve will be very important for the high street and very important for HMV," said Moore.

The retailer has also been buoyed by a £40 million investment from its suppliers, the Telegraph reported. The report credited industry sources, who explained that the endowment was to aid the retailer operate over the Christmas period.