The troubled music company is the U.K.'s last major high street music retailer and has over 230 brick and mortar HMV stores in the United Kingdom and Ireland along with 9 Fopp outlets. It also has a 50% holding in U.K. digital retailer 7digital, which powers its own digital offering HMV.com.
"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," HMV confirmed in a statement.
"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," the statement went on to say.
The company's most recent financial results, which accounted for the six months ending Oct. 27, reported a £36.1 million ($58.5 million) first-half loss, with total sales falling 13.5% to £288.6 million ($467.7 million), from £333.7 million ($540.8 million) the previous year. Despite selling a number of its live assets throughout 2012, including flagship venue, London's Hammersmith Apollo, to American-German joint venture Stage C for £32 million ($51.9 million), HMV Group's underlying net debt remained £176.1 million ($285.4 million), according to December's Interim Results.
The same month saw New York-based investment group Apollo Global Management reportedly buy a 10% holding in the troubled retailer - approximately £20 million ($32.4 million) - with a possible view to acquiring the company.
HMV is yet to disclose its performance during the crucial holiday trading period and recently launched a U.K.-wide promotional sale to boost its finances.
According to the Financial Times, a week prior to today's (Jan. 14) announcement, HMV unsuccessfully asked its suppliers, including music labels, for approximately £300 million ($482 million) in additional financing to pay off its bank debt and fund an overhaul of the company's business model.
The first HMV store was opened in 1921 on London's Oxford Street by composer Sir Edward Elgar.