UK-based multimedia retailer HMV is set to go into administration, putting around 4, 500 jobs at risk. The retailer has become the latest victim of tough economic conditions.

The 92-year-old music chain is calling in Deloitte as administrator, a move to rescue the business.

HMV said it has been struggling with competition from supermarkets and online retailers and has failed to secure the requisite funds to overhaul its stores.

The company said careful consideration and ceaseless talks with its eight-strong-banking syndicate, including Royal Bank of Scotland, Lloyds, ING, Santander and Sweden’s Handelsbanken for weeks had been unsuccessful.

HMV will become the latest casualty of 2013 on the British high street and will come just days after the British camera chain, Jessops, had shut all its 187 stores.

According to the Entertainment Retailers Association, UK consumers spent more than £1bn on downloaded films, music and games in 2012, which could also be a reason for the collapse.

Established in 1921, HMV is an in-store and online specialty entertainment products retailer. It operates about 235 stores, most of which are located in the UK and Ireland.

The company sells products such as music on CD and vinyl, DVDs and Blu-rays, video games and accessories like headphones.