Zavvi is closing 22 stores across the country with the loss of 178 jobs, administrators have confirmed.
Administrators Ernst & Young said the closures, which include sites in Liverpool, Manchester and Edinburgh, will be effective immediately.
The remaining 92 music and video stores will continue to trade and prices will be slashed by a further 20-50 per cent from Friday.
Tough conditions on the high street is making the hunt for a buyer difficult, the administrators have admitted.
Tom Jack, joint administrator from Ernst & Young, said: "Despite record consumer demand since Christmas it is no longer possible to support continued trading across all of the Zavvi stores.
"Unfortunately the current difficulties faced on the UK high street seem to be discouraging retailers from investing in a significant number of new stores."
However, Ernst & Young said it still hoped to sell Zavvi as a going concern and has 60 "expressions of interest" in the business.
The firm said it is working closely with the Insolvency Service's Redundancy Payment Office and Job Centre Plus to support employees made redundant, including a fast track process for paying redundancy entitlements.
Digg 
Delicious 
Reddit 
StumbleUpon 
Google 
Technorati 
Netvouz