HMV has become the latest victim of the recession, as it failed to fend off modern music-selling rivals.
The entertainment store chain has thrown in the towel by calling administrators in a move which puts more than 4,000 jobs in jeopardy.
SKY News revealed on Monday that the board of HMV had served notice of its intention to appoint Deloitte to over-see the last efforts to rescue the high street entertainment retailers.
The company said: “On 13 December 2012, the company announced that as a result of current market trading conditions, the company faced material uncertainties and that it was probable that the group would not comply with its banking covenants at the end of January 2013.
“The company also stated that it was in discussions with its banks.
“Since that date, the company has continued the discussions with its banks and other key stakeholders to remedy the imminent covenant breach.
“However, 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.
“The directors of the company understand that it is the intention of the administrators, once appointed, to continue to trade whilst they seek a purchaser for the business.”
Trading in HMV’s shares, which are now expected to be worthless, were suspended this morning.
HMV has felt the competition from supermarket chains like Tesco and the growth of online and digital media like Amazon.
HMV traces its roots back to 1921, when Sir Edward Elgar, the renowned composer and conductor, opened its first store on London’s Oxford Street.
The move could mean a loss of 400 jobs in Ireland.
