The retailer, which currently has over 230 stores, has appointed professional services firm Deloitte as administrator, after suppliers refused its last-ditch attempt request for £300 million of additional funding to pay off its mounting debts.
The announcement comes at a bad time for the British high street, just days after camera chain Jessops closed for good, losing 1,400 jobs in 187 stores.
In a statement, HMV said: “The board regrets to announce that it has been unable to reach a position where it feels able to continue to trade outside of insolvency protection, and in the circumstances therefore intends to file notice to appoint administrators to the company and certain of its subsidiaries with immediate effect.”
It added that it believes Deloitte will try and find a buyer for the business.
HMV, which has been a presence on the high street since 1921, has been in trouble for years, finding itself unable to compete with fierce competition from online retailers, digital downloads and supermarkets. In 2011, it announced it was selling off its book chain Waterstones and would be closing 60 stores.
At the time, in an exclusive interview with HR magazine, HMV HR director Steve West (pictured) said of the closure: “It's a bit like pruning some branches to support future growth of the whole tree, although that will be little consolation to some colleagues, so this is not something we have undertaken lightly."
