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More than 100 jobs have been axed at HMV distribution centres in London in the first tranche of redundancies since the group collapsed into administration.

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Administrators Deloitte said retail jobs remained unaffected and all stores continue to trade.

Seventy-eight of the jobs are going at the company’s headquarters in Eastcastle Street with 24 in Canning Town.

Nick Edwards, joint administrator, said the job cuts were a “necessary step in restructuring the business to enhance the prospects of securing its future as a going concern”.

Hopes of a rescue deal for HMV have been raised after restructuring firm Hilco - the group behind HMV Canada - bought the company’s debt last week.

It is thought that Hilco was planning to begin negotiations this week with suppliers and HMV’s landlords as part of a plan to salvage the group.

Hilco reportedly wants to rescue about half of the stores in the UK as it looks to repeat the strategy that has seen it turn around HMV’s Canadian arm, which it bought in 2011.

Mr Edwards added: “We have been very pleased with the level of interest in the business as a going concern, whilst the response from customers has demonstrated the demand to see HMV remain on the high street.”

“Equally, the support received from suppliers has been very positive and has enabled us to continue trading during the administration.”

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