Up to 100 HMV stores are set to close when their stock is sold, administrators will tell staff of the collapsed retailer this week, pulling the plug on 1,500 jobs.

Administrator Deloitte cut 190 jobs across its head office and distribution network last week and now the axe is set to fall on store staff.

Between 60 and 100 of HMV’s 223 stores face closure, according to The Sun.

The deadline for expressions of interest in the collapsed entertainment retailer passed last Wednesday. Deloitte has sent out information regarding the sale to about 20 interested parties.

Private equity firms Better Capital and Endless had been interested in HMV in the early stage of the administration process.

Theo Paphitis, owner of Ryman Group and star of Dragons’ Den, is in the running to take on former HMV stores. He is also interested in Jessops and Blockbuster shops.

Other retailers in the running for HMV stores include grocers and value players, as well as overseas retailers. Property agent CBRE is advising Deloitte on the sale of stores.

HMV was thrown a lifeline last month when restructurer Hilco acquired its debt for £40m. However, the retailer remains in administration, and it is unclear what Hilco’s plans for the business are.

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