Deloitte, the joint administrators of collapsed music retailer HMV, have sold HMV's majority shareholding in the London-based nightclub business G-A-Y Group Ltd to its original founder.

Following the sale by HMV of its various music and entertainment venues during 2012, G-A-Y was the only remaining venues business comprising the G-A-Y bars and Heaven nightclubs. It has been sold to JJ is G-A-Y Ltd, a company owned by Jeremy Joseph, who was other shareholder.

Joseph said: 'HMV made a strategic decision to sell certain businesses which included the sale of their shares in G-A-Y almost a year ago. I am delighted to have acquired 100% ownership of the business that I founded 20 years ago and to have secured the future of my 200 employees.'

Rob Harding, joint administrator, said: 'This will benefit the creditors of HMV and we wish Mr Joseph the best in the beginning of a new era for G-A-Y.'