HMV gift cards can be used from Tuesday 22 January

People with HMV gift cards will be able to redeem them in store from tomorrow.

Nick Edwards, one of the joint administrators appointed by Deloitte confirmed that HMV's financial position meant they were able to honour the cards and also the retailer's charity commitments.

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HMV went into administration last week after months of dismal trading for the iconic store. Deloitte appointed Ewards, Rob Harding and Neville Kahn joint administrators on 15 January However they immediately made the decision to stop gift cards being accepted in-store.

It has in the past with other companies, such as Comet, reversed this decision after assessing the financial position of a company. It announced today that HMV gift cards can now be used. However people with gift cards could have applied to their bank to get their money back if this decision had not been made.

Additionally Proceeds raised by HMV through the sale of charity releases (including the Hillsborough Justice Collective single) will be paid in full as soon as possible.

"The ability of Administrators to honour gift vouchers will depend on the specific circumstances of each case. Since our appointment as Joint Administrators we have been urgently assessing the companies' financial position. I am pleased to confirm that, having concluded this assessment, we are able to honour gift cards.

"I can also confirm that all money raised by HMV for various charities will be paid in full. We recognise that both of these matters have caused concern for individuals and organisations affected and are pleased to have reached a positive outcome," said Nick Edwards.

His comments showed that he was quite optimistic about the longer term future of HMV, which opened its first store in Oxford Street in 1921.

"We will continue to assess the longer term options for the business whilst continuing to trade. I am hopeful this process will result in the business continuing as a going concern."