HMV has confirmed it is mulling the sale of Waterstone’s as well as its Canadian business as part of its turnaround strategy.

As revealed in Retail Week magazine today, parties thought to be interested in HMV Canada include restructuring firms Hilco, Gordon Brothers and GA Europe.

In a statement this morning HMV said: “In response to press speculation, the Board confirms it is exploring strategic options in respect of Waterstone’s and HMV Canada.

“There can be no certainty that any transaction will be concluded.

“The Board also confirms that no discussions are taking place with respect to an offer for the Group.

“The Group’s lending banks continue to be supportive, our banking facilities remain fully available and the Group is continuing to maintain a regular and constructive dialogue with its lenders.”

HMV’s turnaround strategy could also include a company voluntary arrangement (CVA). A rights issue is also being considered.

According to Sky, HMV management met with members of its banking syndicate on Tuesday. A decision about which route the retailer will take could be made as early as next week.

JJB creditors voted through the struggling sports retailer’s second CVA in as many years on Tuesday, as it prepares to shuts stores in order to stave off administration.