UPDATED: High street home entertainment retailer HMV has confirmed it is to enter administration after suppliers refused to grant the company a lifeline.
The last major music and video retailer left in Britain's town centres issued a statement to confirm reports earlier on Monday evening.
The trading of the company's shares have also been suspended, while almost 4,500 jobs are now at risk. Gift cards and vouchers will not be honoured although stores are staying open for the time being.
In a statement the company said: "The board regrets to announce that it's been unable to reach position where it feels able to continue to trade outside of insolvency protection. Directors of Company understand that it is the intention of administrators to continue to trade whilst they seek a purchaser."
Last week, the 92-year-old store had requested a £300m financing package from music labels, game publishers and film studios - who already own 5 per cent of the company - in order to pay off its bank debts. The request was declined.
Deloitte, the company which had been advising the banks owed money by the struggling chain, will oversee the process, reports have claimed.
The company held an emergency board meeting on Monday night and made a swift announcement thereafter. Earlier reports had claimed that it would confirm the news on Tuesday.
Another one bites the dust?
HMV had held a massive blue cross sale at its 239 stores in the UK and Ireland last week in an attempt to spark sales, but that simply led to a massive drop in the company's ever-dwindling share price.
HMVs looming demise follows the loss of other music, game and DVD retailers like Zavvi, Woolworths and Our Price in recent years.
The company's problems will be a further blow for the beleaguered UK high street, with likes of JJB and tech retailer Comet and photography chain Jessops closing down recently.