Christmas disappoints HMV

Simon Fox, the chief executive of HMV, has said it still has to "convince" the City it has a future after it posted another slump in underlying sales over the crucial Christmas trading period.

Asked about its shares languishing at just 2.8p, he said: "The key issue is convincing the market that we will be around for the foreseeable future. We have highlighted we feel confident we will be around for some time. We have a strongly supportive group of suppliers and banks."

But Fox described as "disappointing" an 8.2% fall in its like-for-like sales for the five weeks to December 31. As it seeks to diversify away from CDs and DVDs, the group touted a 51% jump in sales of technology products.

HMV has debts totalling £164 million and is trying to sell its live music venue business to cut borrowings.