Mike Ashley in talks to rescue HMV three weeks after music retailer went into administration

Music retailer collapsed in December after weak Christmas trading and decline in the CD and DVD market

Mike Ashley is in talks to buy music chain HMV, weeks after it went into administration for the second time.

The company collapsed at the end of December, putting 2,200 jobs at risk, blaming “extremely weak Christmas footfall” and continued decline in the DVD and CD market.

Paul McGowan, chair of HMV’s owner Hilco, said in at the time: “HMV has clearly not been insulated from the general malaise of the UK high street and has suffered the same challenges with business rates and other government-centric policies which have led to increased fixed costs in the business.”

Administrators from KPMG were called in to seek a buyer for the business as a going concern, with all 125 HMV stores to remain open while negotiations with suppliers take place.

KPMG said it had received offers “on a number of bases”, and Mr Ashley entered the bidding process ahead of the 15 January deadline, according to a report by Sky News.

Mr Ashley has picked up a number of struggling businesses over recent months. He bought House of Fraser for £90m after the department store group collapsed in August last year, and purchased Evans Cycles as part of a pre-pack administration in October.

Sports Direct and KPMG have been approached for comment.