Sports Direct owner Mike Ashley is set to place a bid to buy struggling music retailer HMV out of administration, in a move that could further tighten his grip on the UK High Street.

The outspoken retail tycoon, who has saved a string of retailers from the administrators in the last year, including House of Fraser and Evans Cycles, is in talks to table a bid for HMV after it collapsed into administration in December, Sky News reported.

HMV going out of business could put more than 2,200 jobs across 125 stores at risk. It has been hit by the rapid decline in CD and DVD sales as consumers shift to online streaming services.

Announcing its administration process in December, HMV owner Hilco said a “tsunami” of challenges had contributed to the second collapse of the company in six years.

In November, Ashley warned that the High Street would suffer the worst November “on record” and urged action from MPs to tax online retailers to level the playing field for bricks and mortar retailers.

In recent months, there have been reports that Ashely is also keen to step in to provide financial support to department chain Debenhams, in which he owns a 30 per cent stake.

Last month it was reported that Debenhams had rejected the offer of a £40 million short-term loan to help support the company through the Christmas trading period.

And last week, Ashley led a boardroom coup which resulted in the removal of chairman Ian Cheshire and chief executive Sergio Bucher from the Debenhams board, although the latter retained his place as chief executive.

Sky News reported that Ashley has been involved in talks with music and entertainment industry suppliers to HMV in the last fortnight, with a view to buying the business out of administration process, which is being led by KPMG.

KPMG is expected to decide on a preferred bidder within the coming week.

Retail Systems has approached Sports Direct for comment.

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