Jobs are at risk at the last Lincoln High Street entertainment store after HMV appointed administrators Deloitte to seek a buyer for the struggling chain.
HMV said its stores would remain open during this process, but its ordinary shares have been suspended from trading on the London Stock Exchange.
Gift vouchers or returns will no longer be accepted.
Besides the HMV store on Lincoln High Street, the chain has shops in Lincolnshire in Boston and Grimsby, and also in Scunthorpe in North Lincolnshire.
The 90-year-old retailer, known for its Nipper the dog trademark, has 240 stores across the UK and employs some 4,350 people.
The HMV Group — short for His Master’s Voice — was in crisis talks after suppliers refused to save the struggling company with £300 million.
The money would have been used to pay off bank debts and help improve the brand’s business model.
HMV also blamed poor sales in the run up to Christmas for its problems, plus growing competition with the online market.
Despite this, the retailer still sells around 27% of all DVDs and Blu-Ray discs in the UK and 38% of the physical music market.
HMV is one of the last CD, games and DVD brands to exit the High Street after the likes of Zavvi and Virgin Megastore shut down in previous years.
HMV is the third High Street casualty in Lincoln this year, after camera retailer Jessops went into administration and closed two county stores and one in Lincoln, and the Sony Centre on Lincoln High Street closed last week.