HMV, Britain’s biggest high street music retailer, with a store in Aberdeen’s Trinity Centre, is said to be on the brink of administration for the second time in six years.
The company currently employs around 2,200 staff across 125 branches, with employees at the Aberdeen store also at risk of losing their jobs.
Following a weak Christmas period, the music retailer is reported to be appointing administrators.
HMV confirmed its 125 stores across the UK will continue to trade, while negotiations with suppliers and potential buyers are ongoing.
The 97-year-old retailer was acquired by Hilco, the restructuring firm, when it previously collapsed into administration in 2013.
HMV and other music retailers face many challenges due to the industry changing rapidly. It is believed the rise of online streaming services, downturn on UK high streets and weak consumer confidence have taken their toll on HMV.
Multiple other high street retailers including Superdry and Card Factory have issued profit warnings. In addition, several other retailers were forced to slash prices after brutal trading in November and early December failed to lure shoppers to stores.