The head of the UK music umbrella body said he wanted to see the chain stay on the high street, as the stricken company said it will no longer accept gift vouchers at its HMV or Fopp stores.
Andy Heath, chair of UK Music, said the industry "certainly" wants to see HMV - which went into administration on Monday - continue bricks and mortar trade, but warned that sweeping structural changes would be necessary.
"There is still significant and very large demand for people wanting to buy music in the high street," he said, speaking on Radio Four's Today Programme.
"I think there is a place for a chain but the chain needs to be focussed in a way HMV was unable to be focussed.
"Going into administration gives HMV an opportunity for a substantial and decent rebirth."
Mr Heath suggested the 92-year-old chain could exist with fewer, more strategically placed stores in order to take on its internet rivals, Amazon and iTunes.
His words will strengthen hopes that the music and film industry - which is understood to have provided £40m to shore up HMV in the run-up to Christmas - might facilitate a rescue of the chain.
Universal Music is liable for the rent on 14 of HMV's 238 UK stores, a guarantee it assumed after buying the retailer's former parent company EMI earlier this year.
Ian Kenyon, chief financial officer at HMV, said the chain's suppliers had been "amazingly supportive" and were "working hard" to try to find a future for HMV on the high street.
HMV, the last major music retailer left on the high street, called in administrators from Deloitte on Monday after talks with banks and stakeholders failed to avert an imminent breach of its banking covenants.
The company said it would "continue trade whilst they seek a purchaser for the business".
No single rescuer has yet emerged. Private equity (Swiss: PEHN.SW - news) firm Apollo Global Management, which stoked rumours of a takeover bid in December after buying 10pc of HMV's debt, said it was not planning to buy the chain.
HMV's collapse is the latest in a string of high street casualties in recent months, following chains such as JJB Sports and Comet. HMV’s chief executive, Trevor Moore, previously led camera chain Jessops, which fell into administration last week.