HMV Guernsey, where the entertainment retailer has one store, has followed its parent company and plunged into administration.

The store was the island’s last remaining music shop.

Rick Garrard and Nick Edwards of Deloitte have been appointed joint administrators to the company, which is part of the HMV Group.

HMV’s UK retail businesses, along with its Jersey operation, were placed in administration on 15 January.

Garrard said: “The Guernsey store continues to trade as normal and continues to accept gift vouchers. We will work closely with the HMV administrators in the UK, local management and staff to continue trading while pursuing a sale of the business.”

Restructuring firm Hilco has entered into talks to buy its parent company out of administration in a £50m deal.

Hilco – which acquired HMV’s debt after it collapsed, leaving it in the driving seat – wants to take on 130 stores and is aiming to conclude a deal within three weeks.

It is understood that a deal must be struck before the end of March when HMV’s quarterly rent bill is due.

A second party is also thought to be interested in buying the business.