HMV: Record labels could take retailer back to its 1920s roots That is why HMV stands a best chance of continuing as a retailer than Jessops, Comet, and JJB Sports. The opening of the HMV store sparked a dramatic period of growth for the Gramophone Company, which eventually led to it becoming EMI, still one of the world's leading record labels. By the 1960s, EMI was flourishing, helped by its decision to sign up a new type of guitar band, The Beatles. The band was signed up after its manager, Brian Epstein, used the in-store studio at HMV on Oxford Street to make a demonstration record. This prompted the expansion of HMV, first into other parts of London and then cities around the UK. In 1984, Bob Geldof opened a new flagship store at 150 Oxford Street in London. It remains the biggest music store in the world. However, the problems for HMV began after it started to drift away from the music industry. In 1998, HMV was spun off from EMI and bought by private equity house Advent International. Although EMI maintained a 43pc stake in the enlarged business, which now included book chain Waterstones, this marked the end of HMV's direct involvement with the record label. The roots of HMV mean it was once seen as an innovator in the music industry, but, following its split from EMI, it has lagged behind digital rivals. Instead, a new innovator and saviour has emerged in the shape of Apple. With the birth of the internet, the music industry came under pressure from piracy. However, the launch of iTunes, the iPod, and the iPhone has driven a boom in UK single sales from 40m to 180m. But music and film suppliers still want HMV to survive. Most albums are still bought in stores, HMV offers a place to advertise new releases, margins are stronger on products sold in HMV rather than the internet, and the high street can attract more impulse buyers. Therefore, over the last year, suppliers have offered HMV greater access to back catalogues, allowed it to buy stock on consignment - which means the retailer pays only for products if it sells them - and launched promotions with HMV, such as "5 for £30" on Blu-ray discs. Industry sources estimate that suppliers have provided £40m of financial support in the run-up to Christmas and have taken a 5pc stake in HMV by activating warrants they held over the shares. The appointment of administrators by HMV could open the door to a full takeover of the business by its suppliers - which include the music, film and video games industry. The administration would allow the company to shed its biggest burdens - more than £200m of debt and a substantial rent bill on its 240 shops. This would make a takeover more attractive to a company like Universal, which now owns EMI. A deal with Universal would be the ultimate back-to-the-future story for HMV. But other potential bidders for the company could be private equity firms and turnaround specialists, who are likely to be attracted to the company by the desire of suppliers to support HMV. These bidders could include Hilco, Jon Moulton's Better Capital or even OpCapita, the owner of video games retailer Game, although this is highly unlikely given the criticism of the investment firm following the collapse of Comet. However, a deal to save HMV is far from certain. Despite the support of suppliers, HMV is still operating in a shrinking market under fierce pressure from supermarkets and online rivals led by Amazon. Even if there is a rescue, thousands of jobs and many of the stores are likely to close.