Staff at Dundee’s HMV store to learn their fate today

The HMV store in Canterbury

The deal, headed by entrepreneur Doug Putman, will rescue 100 HMV stores and save nearly 1,500 jobs.

Music chain HMV has been rescued from collapse by Doug Putman, the CEO of Canadian record store chain Sunrise Records, The Guardian reports.

However administrator KPMG says 27 stores will close immediately, resulting in a loss of 455 jobs.

"We are pleased to confirm this sale which, after a complex process, secures the continued trading of the majority of the business", said Will Wright.

In a written statement issued on Tuesday, Putman said "the physical media business is here to stay", noting he was "delighted to acquire the most iconic music and entertainment business in the United Kingdom". We know the physical media business is here to stay'.

HMV has been saved from administration for a second time in six years.

Neil Gostelow, partner at KPMG and joint administrator, added: 'We are grateful for the support of all key stakeholders including the suppliers whose support throughout this process has been key in securing this sale'.

The chain has struggled for years with competition from music streaming services and online competitors.

Hilco, which already owned HMV Canada, acquired the UK HMV stores in a deal reported to be worth about £50million. Poundworld, Toys'R'Us and Maplin went under a year ago, and major retailers like Debenhams are closing stores.

HMV is set to shut its flagship London stores in Westfield and Oxford Street as part of a swathe of closures following a rescue deal with Sunrise Records. The plan is to continue to operate them under their existing banners of HMV or Scottish based Fopp and not convert them to Sunrise Records.

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