It has been predicted by industry experts that high street store HMV could be on the verge of closing down after the store announced a month long sale.

The company announced that it was likely to breach its “banking covenant” and often when companies fail to meet deadlines it means that they could be about to enter into administration.

Robert Clark, a retail analyst said to Sky News: "A lot becomes clear after Christmas - the sale suggests that they didn't have a good one and are trying to reel in as much cash to tie things over.

"I'm not sure how much time they've got. I don’t think they’ll be able to sway their bankers. Financial institutions are less likely to show patience in this climate."

Genarro Cataldo, a spokesperson representing HMV has denied the claims that the chain is in trouble, saying that the sale is just the same as they have every year. He told Sky News:

"Normally we'd look to run a multi-buy campaign of some kind at this time of year, but we thought we'd freshen our promotional mix up a bit and try something a bit different that will hopefully stand out from all the other sale offers on the high street right now,"