HIGH street bargain retail chain Music Zone was today placed in the hands of administrators after its bankers pulled the plug on the business, following a poor Christmas trading period.

Around 1,100 staff working at the Stockport-based chain of 104 stores now face an uncertain future while accountancy firm Deloitte tries to find a buyer for the business, the UK's third-largest music and film retailer by store numbers.

Its turnover in the current financial year ending May is forecast at é115m.

A spokesperson for Music Zone said: "There is a growing number of high street retailers like Music Zone experiencing challenging trading conditions. Pre-Christmas spending was also poorer than expected.

"The decision by our bankers to recover debts and withdraw credit facilities without notice and with immediate effect left us and our private equity backers with no real alternative other than to appoint administrators."

It is understood that the business had debts of just é1.5m when the plug was pulled by Bank of Ireland.

Bill Dawson, from Deloitte's reorganisation services division, has been appointed administrator.

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Mr Dawson said today: "Music Zone has an excellent store portfolio, with a UK-wide footprint covering predominantly prime high street locations. We're currently trading the business while seeking interested parties to acquire Music Zone as a going concern."

A spokesperson for LDC, the firm's private equity backers, said: "Despite the best efforts of a very capable management team, Music Zone has struggled in the face of aggressive pricing and deteriorating sales across the music and DVD sector.

"We're now working closely with management and the administrators to identify the most favourable outcome for employees, creditors and shareholders."

The Stockport company was bought from its founder, Russ Grainger, in March, 2005, for é12m by LDC, with the backing of Bank of Ireland.

It has been hit by tough trading as shoppers have turned in their droves away from the high street to the internet to buy and download music.

Larger rivals Woolworths and HMV have warned in the past month that their profits would be hit by the double whammy of a fierce price war and slow CD and DVD sales.