THE Merry Hill branch of HMV is to close, it has been confirmed.

The branch is one of 27 unprofitable stores to close around the country, following the retailer being acquired out of administration by Canadian retailer Sunrise Records.

The Canadian company has acquired 100 stores in the beleaguered chain.

HMV's flagship store on Oxford Street also faces closure.

Doug Putman, owner of Sunrise Records, said: "We are delighted to acquire the most iconic music and entertainment business in the UK and add nearly 1,500 employees to our growing team.

"By catering to music and entertainment lovers, we are incredibly excited about the opportunity to engage customers with a diverse range of physical format content and replicate our success in Canada.

"We know the physical media business is here to stay and we greatly appreciate all the support from the suppliers, landlords, employees and, most importantly, our customers."

Administrator KPMG will retain a further 122 employees at warehouse functions to assist in winding down operations.

Will Wright, partner at KPMG and joint administrator, said: "We are pleased to confirm this sale which, after a complex process, secures the continued trading of the majority of the business.

"Our immediate concern is now to support those employees that have unfortunately been made redundant."

Neil Gostelow, partner at KPMG and joint administrator, added: "We are grateful for the support of all key stakeholders including the suppliers whose support throughout this process has been key in securing this sale."