HMV, the last UK high street chain, received a boost this week after chiefs of several major record labels rallied round the under-pressure high-street retailer.
Those supporting the troubled chain include Ged Doherty of Sony Music UK, David Joseph, chairman of Universal Music UK and Christian Tattersfield, chief executive of Warner Music UK.
The news comes a day after it was revealed some of HMV's suppliers were having their credit insurance reduced due to low confidence over the HMV group's trading position.
With no insurance cover, HMV's suppliers are trading at their own risk but HMV sought to assure over the impact of the insurance situation.
A statement from HMV said: "Whilst this has resulted in the reduction in the availability of credit insurance to certain of the company's suppliers, our business remains a core channel to market for them. We continue to maintain excellent relations with our suppliers and have had no difficulty in obtaining stock."
The brand is facing tough financial times after the closure of several stores and the company's shares price falling over 10 per cent.
Leading accountancy firm KPMG were drafted in to advise HMV on how to manage its relationship with lenders. HMV announced in early January it was in danger of breaching its banking loan repayment terms.
The company, which also owns book sellers Waterstones, is reported to have a £151.6 million debt pile.
Following the demise of Woolworths and Zavvi, is the UK high street set to lose its final music retailer?
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