High-street retailer backtracks on previous decision to block store credit.

Troubled retailer HMV, which announced last week was entering administration, has announced it will be accepting gift vouchers and store credit as of January 22.

Last week's decision to freeze in-store credit was met with a largely negative response, including the publicised case of grandfather Eric Nolan storming out of a branch of the store with three games.

Deloitte administrator Nick Edwards said that the decision to block gift vouchers "caused concern for individuals and organisations affected" and that Deloitte is "pleased to have reached a positive outcome."

"Since our appointment as Joint Administrators on Tuesday afternoon, we have been urgently assessing the Companies’ financial position," added Edwards.

"I am pleased to confirm that, having concluded this assessment, we are able to honour gift cards."

Since entering administration last week, numerous potential buyers are reported to have shown an interest in the high street chain - chief amongst them is turnaround group Hilco, according to MSN, which already owns HMV Canada.

HMV currently has 239 stores in the UK and employs 4,350 people.

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