Ailing music group EMI may be planning to sell its stake in the HMV record store chain in an attempt to cut its debts.

The Financial Times reported on Friday that EMI's 43% stake in HMV Media, which owns about 500 stores worldwide, could be among a number of assets earmarked for disposal as part of a debt-reduction plan.

EMI could also sell off its �285m property holdings, which include London's Abbey Road recording studios, the FT reported, stressing that no decision has yet been made.

EMI's debts pile has risen to �1.1bn ($1.57bn), prompting concern over the impact on profits of hefty repayment and servicing costs.

Dwindling music sales

The company has been hit hard by the global economic slowdown, which has reduced consumer spending on CDs and records.

EMI, which has issued two profit warnings in the last six months, in November announced a �2m loss for the March to September period, compared with a �59m profit the year before.

Last week, the company said it plans to streamline its roster of record labels and cut some executive posts in an attempt to cut costs.

In January, EMI bought fading pop star Mariah Carey out of her recording contract for �19m following poor sales of her latest album.

The singer had signed with EMI just nine months earlier for an estimated �70m, making her contract one of the most expensive ever.

EMI chairman Alain Levy is due to unveil a recovery plan emphasising debt reduction next month.

Last year, EMI tried to merge first with Warner Music and then with German media giant Bertelsmann, but both proposed tie-ups fell through.