Tokyo-based Culture Convenience Club (CCC), operator of music and video retail/rental chain Tsutaya, said June 30 that it has abandoned its plan to buy HMV Japan.

CCC had announced on March 25 its intention to purchase all the shares in HMV Japan from Daiwa Securities SMBC Principal Investments (DPI) effective June 30. The 44-store chain was to have continued operating under the HMV banner.

CCC and HMV Japan/DPI reportedly failed to agree on a sale price by the June 30 deadline. Another factor was that more HMV outlets than expected are apparently unprofitable.

HMV Japan will reportedly attempt to survive the Japanese music market's tough conditions by scaling back its operations.

On June 7 the retail chain said it will close its flagship store in Tokyo's Shibuya district in mid-August. HMV Japan will also reportedly close stores in the Aeon Kamisato Shopping Center in Kamisato, Saitama Prefecture, on Aug. 15; in the Kawanishi Mosaic Box shopping mall in Kawanishi, Hyogo Prefecture, on Aug. 29; and in Canal City Hakata in Fukuoka on Aug. 31.

U.K.-based HMV launched its Japanese subsidiary in 1990, but sold it to DPI in 2007 due to declining CD sales.