Shares in HMV were down on the FTSE All Share after the retailer issued a profit warning in which it said pre-tax profit for the full year would be around £30 million.
The group said that since its last update a month ago trading conditions had "remained difficult". At the time HMV cut full year pre-tax profit expectations to around £45 million and said that it was in discussions with its lenders about possible changes to its facility agreement.
Subsequently the group has been permitted by its lenders to have all relevant financial covenant tests from the year ended 30 April 2011 to 2 July 2011.
By 08:25 shares in HMV were down 6.56 per cent on the FTSE All Share to 14.25 pence per share.