Receivers have been appointed to HMV (Ireland) Ltd, putting the jobs of the chain’s 300 employees at risk.
The announcement came after the retailer initially said it was temporarily closing its 16 outlets in Ireland.
A statement this afternoon said Deloitte Ireland partner David Carson has been appointed receiver following a request from the directors of the company to the banks.
HMV’s Irish shops will now remain closed until Mr Carson completes an assessment of the viability of the company and its cost structure, “including property occupational costs.”
The statement said all efforts will be made by the receiver to secure a purchaser for the shops.
The company, which employs some 4,000 people in Ireland and Britain, announced yesterday that it was entering into administration in the UK after being refused a request by suppliers for a £300 million lifeline.
HMV shops in Ireland continued to trade yesterday but customers with vouchers and gift cards were turned away.
It emerged this morning that vouchers purchased at the music and games retailer should have been honoured as the Irish branch of the UK multiple was not in receivership at the time.
In a statement this morning, the National Consumer Agency (NCA) said it has established that HMV in the Republic of Ireland is a separate corporate entity to the UK operation and was not under administration or examinership when it opened its doors yesterday.
After years of struggling as its business of selling CDs and DVDs was hammered by competition from supermarkets like Tesco, online retailers like Amazon and download sites like Apple's iTunes, Deloitte was appointed administrator on Tuesday to try to salvage the company.
Separately, a statement issued today by the producer of a charity song recorded to raise funds for Lily Mae Morrison who is a seriously ill girl in Galway, said he has been contacted by the company’s receiver.
Stephen Macken produced Elton John song Tiny Dancer for the Sunni-Mae Trust which is reportedly owed a substantial sum for sales of the record over Christmas.
Mr Macken said Mr Carson told him he was “acutely aware” of the sensitivity of the situation and would deal with it “as a priority”.
“I am grateful to Mr. Carson for taking the time today, in what must be an incredibly busy and stressful position, to call me and to give me this news.
I look forward to hearing from Mr. Carson in due course,” he said.
