HMV has fallen into administration for the second time in six years.
The entertainment retailer confirmed it has appointed administrators from KPMG following a weak Christmas period.
The executive chairman of HMV - and its its owner Hilco Capital which purchased the company in a 2013 rescue deal - said deterioration in the UK CD and DVD market made the situation "unsustainable".
The company's 125 stores across the UK will continue to trade, HMV confirmed, while negotiations with suppliers and potential buyers are ongoing.
HMV said despite growing its market share through the year, the industry expects to see the market fall another 17% in 2019, leading the directors to conclude it cannot continue to trade.