".... HMV's banks – state-backed Royal Bank of Scotland and Lloyds – said they were unwilling to go on lending it money," said MailOnline.
"The writing had been on the wall since the run-up to Christmas, when dire sales figures forced the firm to admit it might breach the terms of its bank loans," it said.
HMV could be the second household name to go under this year, following closure of camera chain Jessops with the loss of 1,300 jobs.
It is still possible that a 'white knight' buyer could ride to the company's rescue at last minute, buying part or all of its 230-strong network of stores, the report said.
If not it will mean the end of a name that has graced the high street since 1921. There was no sign of a saviour for HMV today, after US-based investment firm Apollo Management walked away from takeover talks, the media report said.
Shoppers have spurned physical copies of music, film and books for downloads from websites like iTunes and Amazon.
The report quoted Labour business spokesman Chuka Umunna as saying that "for the sake of HMV's employees, we hope a way can be found to keep the business going – the demise of this institution would be a body blow to British retail".
Administrators could opt to keep stores open during the process in order to raise funds by shifting as much stock as possible, the report said.
HMV failed to keep pace with the digital revolution, as shoppers turned to online retailers such as Amazon. It has also been under attack from supermarkets such as Tesco and Sainsbury, which are able to offer discount DVDs and CDs thanks to their size, it added.
Music retailer HMV says it's looking at bankruptcy
(AP): British music and entertainment retailer HMV says it is preparing to enter a form of bankruptcy after failing to secure a reprieve from its lenders.
The company said in a statement late Monday that it is unable to trade "outside of insolvency protection'' and would go into a type of bankruptcy called administration.
HMV employs more than 4,000 people and used to be a dominant player in Britain's music distribution business.
But the chain failed to adapt to upheaval caused by the rise of the Internet and has spent the past couple of years shedding stores and selling subsidiaries.
HMV sold its Waterstones bookstores in mid-2011 and has made forays into the live music and ticketing businesses.
The company has around 200 stores in Britain, Ireland, Singapore, and Hong Kong.