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HMV shares reach all time low

Profit warning issued, casting doubts over future of HMV Group.

HMV Group has issued its second profit warnings of the year, sending its shares plummeting down by almost 25 per cent.

The troubled music and entertainment retailer warned that City earnings for the current year would be below expectations and it expected to breach its banking covenants in June.

Shares in HMV are currently 15.75p, their lowest ever level, and the firm is valued at just over £66m.

HMV group is negotiating with its bankers to change its borrowing conditions, as the companies net debt is forecast to be at least £130m in April.

This profit warning has aroused fresh doubts over the future of the group, who are planning to close 40 HMV stores and 20 Waterstone's bookshops, in a bid to retain cash and cut costs.