HMV Asia Pacific president Paul Dezelsky confirms reports that HMV Group may sell its Japanese operations.

"A strategic review is underway, and a decision will be made once all the possible alternatives have been identified and fully evaluated," Dezelsky says, adding that this may several weeks.

"One of the possible outcomes may be a sale of HMV Japan, but no decision has yet been made on this," he says. "Another possible outcome is that HMV Japan will be retained in full or in part by HMV Group."

One Japanese industry source says he hopes the 57-store HMV Japan operation will remain intact. "It would be a disaster if it's allowed to implode," he says.

Dezelsky, however, says such concerns are unfounded. "There is no danger of 'implosion'," he says.