HMV's 16 stores will not reopen according to the group's receiver, David Carson of Deloitte.

A statement this afternoon confirmed that HMV's 300 staff, who were previously placed on temporary lay-off, will now be made redundant.

Deloitte said that the receiver had assessed the viability of the company and actively sought a sale. It said the marketplace was very difficult given competition from web-based retailers and digital downloads.

Deloitte said this was compounded by a number of other factors including high levels of rent. All stores were loss making and it was not possible to attract a purchaser, it added.