HMV has officially confirmed that the company are going into administration.

The jobs of 4000 employees will be at risk as 240 of the high street music stores shops will be closed down. Deloitte will be taking over the company and have suspended shares for the time being while they assess the business and seek out potential buyers.

A statement was released to Music Week which said: "It is proposed that Nick Edwards, Neville Kahn and Rob Harding, partners of Deloitte LLP, will be appointed as the administrators of the Company and certain of its subsidiaries.

"The Company's ordinary shares will be suspended from trading on the London Stock Exchange 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."

Experts within the industry had predicted the demise of the chain not that long ago after they started a special month long sale despite claims that it was just to get rid of old stock.

HMV had also previously been refused a loan of £300 million from its suppliers which would have kept the chain afloat and helped to pay off some of the debt that they had accrued.

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