By Marcus Leach

A deal has been struck between HMV and their banks that will aim to half their debts, following the signing of a new deal with their suppliers.

HMV are just one of a number of high street firms struggling at present, but say they deal will give them "significantly enhanced" headroom in which to recover.

The new deal with suppliers gives them 2.5% of the shares in HMV and should cut debt by 50% within three years.

"These developments represent a material improvement in our financial position relative to the statement we made at the time of our interim results," HMV's chief executive, Simon Fox, said.

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