Entertainment retailer HMV plans to reopen the first store it ever opened, on London’s Oxford Street, two months after it was rescued out of administration.

The site is currently occupied by US sportswear retailer Footlocker.

It is understood that HMV’s new owner, restructuring firm Hilco, has exchanged contracts on the 20,000 sq ft store’s lease at 363 Oxford Street, subject to landlord approval.

Sir Edward Elgar opened his first His Master’s Voice shop at the site in 1921. It is commemorated with a plaque, which calls it the “world’s most famous music store”.

HMV is also considering leaving its 150 Oxford Street store, which is deemed too big. It covers 58,000 sq ft.

HMV collapsed into administration in January after sales suffered due to rising digital music and film downloads combined with its £176m debt.

Hilco acquired the chain in April after it had bought the retailer’s debt in January. It now operates 140 stores.

Hilco declined to comment.