The entertainment retailer has today appointed Deloitte LPC as administrators after filing notice of the move late last night.
Whilst HMV's shares have been suspended from trading, Deloitte has confirmed that the brand's 238 stores will remain open as it begins the search for a potential buyer.
It also announced that whilst the retailer will remain trading during the administration process, it will not be accepting any gift vouchers or store credit that customers may have.
The administrator is set to hold talks with potential buyers in order to save the 92-year old entertainment retailer, and the 4,350 jobs currently at risk.
In light of the news, HMV boss Trevor Moore and financial director Ian Kenyon have shared their desire for a chance to lead the brand from the brink of closure.
Earlier today, Moore cited poor technology sales over the Christmas period as severely hindering the business, whilst also claiming that supplies of the latest tablet supplies were insufficient.
HMVs boss announced back in December that "as a result of current marketing trading conditions, the company faced material uncertainties and that it was probable that the group would not comply with its banking covenants at the end of January 2013."
Following the date, HMV has had its request for additional funding from suppliers turned down, which ultimately lead to the decision last night to enter administration.
Kenyon highlighted the move, admitting that directors faced the realisation that the chain "wasn't going to be able to reach a point where we could continue to trade."
However, whilst HMV enters into administration, the pair believe they "intend to do whatever they can to safeguard jobs where possible."
Former Jessops boss Moore spoken of having "a plan in mind" and firmly believes himself to be the man who can save the HMV brand, with the hope of bringing additional backers on board who share his vision.
"Both Ian and I are passionate about developing a plan for the business and evolving it going forward,” said Moore. "We really do think a high street without HMV is not as attractive a place to be as with us."
HMV announced last week that it would host an additional blue cross sale last week, which it defended as "business as normal" as many responded to the move with hesitance, including ITV business reporter Laura Kuenssberg, who labelled the event as a response to the retailer's mounting debt.
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