Receivers of music chain Allans Billy Hyde to close all 27 stores

The receivers of collapsed music chain Allans Billy Hyde have announced all the company's stores will close and more than 500 jobs will be lost as a result.

Brendan Richards of Ferrier Hodgson said in a statement Australian Music Group Holdings will be shut down.

"The loss of jobs is disappointing, but we exhausted all avenues and there is no other way forward for this business," he said.

"These people have served music lovers and been a key part of the Australian music industry for generations. It is a sad day for live music in this country."

The 513 staff will be made redundant over the next few weeks. All the 27 stores will be closed.

The company collapsed earlier this year, after an injection of capital failed to save the business and investors called in receivers. It had been experiencing trouble for years, with the two groups, Allans and Billy Hyde, creating a new chain in 2010.