Sound Control Group, the UK's largest musical instrument retailer, has gone into administration resulting in the closure of ten stores and the loss of 164 jobs.
The company has blamed competition from the internet as the main reason for its failure.
Accountancy firm Deloitte has been appointed administrator of Sound Control Holdings and its subsidiaries following applications to the courts by the group's directors.
Sound Control Group, which is based in Scotland, has 26 stores across the UK, including five in the Midlands - Birmingham, Derby, Leicester, Nottingham and Stoke - and operates under the brand names Sound Control, Media Tools, Turnkey and Soho Sound House.
The group has a turnover of £50 million and employed 338 employees nationwide. Following administration, ten stores - including the ones in Derby and Nottingham - plus its telesales and internet sales operation in Glasgow, have closed, with the loss of 164 jobs.
The Sound Control store on Constitution Hill, Birmingham, will remain open, with no job losses.
Deloitte said the Dunfermline-based group had been impacted by increased competition from the internet and the directors had been pursuing a strategy to sell the business.
Andrew Peters, reorganisation services partner at Deloitte in Birmingham, said: "Following a review of the group's operations the difficult decision was taken to close ten of its trading locations and bring to an end its telesales and internet sales activities. These changes to the group's operations have resulted in 164 redundancies with immediate effect."