HMV has been bought out of administration by Doug Putman, owner of Canadian chain Sunrise Records, in a deal that will save 100 stores across the UK.
The British firm collapsed for the second time in December, blaming “extremely weak Christmas footfall” and continued decline in the CD and DVD market.
More than 2,200 jobs were put at risk after former owners Hilco called in administrators from KPMG.
They sought a buyer for the business as a going concern, and Sports Direct owner Mike Ashley was in talks to purchase the chain at one point
The sale of the retailer will result in 27 stores closing, with 455 roles set to go.
Mr Putman said: “We are delighted to acquire the most iconic music and entertainment business in the UK and add nearly 1,500 employees to our growing team.
“By catering to music and entertainment lovers, we are incredibly excited about the opportunity to engage customers with a diverse range of physical format content and replicate our success in Canada.
“We know the physical media business is here to stay and we greatly appreciate all the support from the suppliers, landlords, employees and, most importantly, our customers.”
Will Wright, partner at KPMG and joint administrator of HMV, said: “We are pleased to confirm this sale which, after a complex process, secures the continued trading of the majority of the business.
“Our immediate concern is now to support those employees that have unfortunately been made redundant.”
