The chain confirmed on Friday that it had called in administrators

The vulture fund that owns HMV charged the struggling music retailer almost £50m in fees in its five-year ownership, while HMV paid no corporation tax.

The DVD and vinyl chain confirmed on Friday that it had called in administrators from the accountancy giant KPMG, leaving 2,200 staff facing the loss of their jobs and 125 stores at risk of closure. The cost of any statutory redundancy payments will be borne by taxpayers.

Paul McGowan of Hilco Capital, HMV’s owner since 2013, blamed a “tsunami” of retail challenges. These included a 30% collapse in the DVD market over Christmas due to video streaming and, he said, a business rates bill that had cost HMV £15m a year.

However, Companies House accounts for HMV Retail,