HMV is to close up to 10% of its Waterstone’s and Ottakar's shops and close all its loss-making HMV stores.

It will slash its expansion plans for HMV from 25 stores a year to just two a year from 2009.

The decision is part of HMV’s initial findings from its property review announced this week as revealed by Property Week (news, 02.03.07).

HMV’s group chief executive Simon Fox initiated the review of the business last year and said: ‘The markets in which we operate are undoubtedly very challenging. The three-year transformation plan which I will outline today is exciting, radical and far reaching. I have every confidence that this plan will turn the business around.’

HMV will use the cost savings made from not opening as many stores to invest in new store formats which will be trialled from this autumn.

HMV has around 229 shops across the UK including Waterstone’s and Ottakar’s.