Beleaguered UK entertainment chain, HMV will call in administrators, with Deloitte to manage a sale process.

The chain employs more than 4000 people across 239 stores in the UK and Ireland.

The brand has struggled against dwindling sales as its core products of music movies and gaming, are increasingly sold electronically.

Attempts to in recent years to expand the business’ scope beyond instore sales appear to have been unsuccessful.In December, HMV warned that a breach of its banking agreements was likely.

Weekend discussion with its banks on new terms for its loans fell through when HMV was unable to reach a position where it was able to continue to trade outside of insolvency protection.

Under administrators all stores will continue to operate while Deloitte searches for a buyer, with expressions of interest already received from a number of parties.HMV’s first store was opened in 1921 on London’s Oxford St by English composer, Edward Elgar.

The brand became a household name around the world, known for its iconic gramophone and dog logo.

The Australian arm of HMV has also disappeared from Australia, absorbed into the Sanity entertainment chain in recent years.