Supermarket giant Asda is in talks with HMV’s administrator to save the collapsed entertainment retailer, according to reports.
The grocer, which is owned by US giant Walmart, has been talking to Deloitte about putting together a bid for the business.
If Asda bids for the retailer, it would put it head-to-head with restructuring firm Hilco to buy the business, which collapsed into administration in January. Hilco, which bought up the retailer’s debt in January, is understood to be in talks over a £50m deal for HMV.
Experts say a deal for some or all of HMV’s remaining 120 stores will need to be struck within the next two weeks when HMV faces a huge rent bill.
Running HMV would be a very different shift in business for Asda but it would give the supermarket greater bargaining power with HMV’s suppliers, who want to have a high street presence.
It is believed Asda might even choose to take the HMV brand into some of its superstores if it bought the retailer.
Asda and Deloitte declined to comment.