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HMV's demise and potential closure has been blamed on the retailer's failure to move its trade online, experts have claimed.

The music, DVD and games store has gone into administation this week, with over 4,000 jobs at risk if a buyer for the company cannot be found. The store has cut its number of stores across the UK in recent years, but has not been able to cope with the digital revolution in the entertainment industry.

"It’s a sad but inevitable fate for a much-loved stalwart of the music industry," says Gregory Mead, CEO of Musicmetric, the global music analysts. "But where retailers like John Lewis have embraced the internet – building customers through its Click and Collect service – HMV simply failed to adapt to the changing tastes of music fans and the seismic shift we’ve seen as everything has gone digital."

Mead adds that the millions of music lovers accessing music online - whether legally or illegally - should have prompted the retailer to adjust its offering accordingly.

"The challenge for retailers like HMV has been to find ways to tap into this – but you’d be hard pressed to be able to walk into an HMV store and buy songs directly on to your iPod," he adds.

"The changing face of music, and that digital technology has overhauled the way we interact with records, means that artists can engage directly with fans, meaning physical retailers have needed to evolve as well.

"While previously it was all about CD releases and the Sunday chart show, now the most important thing is knowing where your fanbase is and what drives them so you can market to them directly and maximise revenues from a myriad of sources."

The once busy shops relied on in-store appearances to pack the aisles

Rumours circulated earlier this month when HMV began a huge stock clearance, but despite denials from a spokesperson for the store, administrators were called in last night (14 January 2013).

An official statement from HMV read: "The board regrets to announce that it has been unable to reach a position where it feels able to continue to trade outside of insolvency protection, and in the circumstances therefore intends to file notice to appoint administrators to the company and certain of its subsidiaries with immediate effect.

"The directors of the company understand that it is the intention of the administrators, once appointed, to continue to trade whilst they seek a purchaser for the business."