HMV said it will be closing around 60 stores across its UK business over the next 12 months after providing an update to the market on its trading performance for the five-week Christmas period, ending 1 January 2011.

The entertainment retailer saw store sales fall 13 per cent.

According to the company, the beginning of its peak trading period was “significantly undermined by severe weather in the UK, which continued through until Christmas”, as well as the challenging entertainment market. Consequently, the anticipated improvement to first half like-for-like sales did not materialise.

“Whilst HMV has had a challenging year to date, it remains a profitable and cash-generative business and a powerful entertainment brand. The pace of change in the markets in which we operate underlines the urgency with which we must continue to transform this business,” Simon Fox, HMV chief executive, said.