Despite HMV Live being the most profitable part of the company, it may have to be sold to boost finances, putting events including Lovebox in London and Global Gathering near Stratford-upon-Avon under threat.

The music, games and DVD store saw a pre-tax loss of £36.4 million for the six months up to and including October, and the store is shouldering £164 million debt.

Shares in ninety-year-old HMV fell by almost 10 per cent after the news broke.

Live venues owned by the entertainment giant like Hammersmith Apollo and Kentish Town Forum may have to be sacrificed to save the business.

In June, the group sold Waterstone’s and HMV Canada to raise £55 million, and earlier this year the group announced that 40 stores were to close.

The company, which employs 4,500, warned that it could go out of business if things do not pick up.

A statement by HMV said: “The economic environment and trading circumstances create material uncertainties which may cast significant doubt on the group’s ability to continue.”

Chief executive Simon Fox said: “Like all consumer-facing companies we are facing tough trading conditions, but we continue to push forwards through this period.”

He added that instead of selling mainly CDs and DVDs, the store would sell more technology products in the future.