HMV confirmed last night that it has called in administration putting more than 4000 jobs at risk.
The struggling music and DVD retailed has appointed administrators Deloitte making it the latest casualty of the high street. Trading of HMV shares on the London Stock exchange has been suspended.
Deloitte will keep HMV's 239 stores open across the UK while it accesses its prospects and looks for potential buyers. Although HMV will continue to trade in the short term, it will not be accepting or issuing any gift vouchers.
HMV said in a statement: "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 news comes just a few months after HMV appointed a new CEO and CFO. The firm saw like for like sales drop by 10.2 percent in the first half of its financial year ending 27 October with a total loss of £36.1m.
HMV, famous for its dog trademark called Nipper, has been around since 1921 but it recent years has struggled to cope with the rise in online sales of digital media such as music and games. More recently HMV has put more of a focus on selling devices such as tablets, headphones and speakers but has had tough competition from the likes of Amazon.