Music retailer Fopp will open for business again after HMV bought the brand and six of its stores for an undisclosed sum.

The company, which started life as a market stall in Glasgow 26 years ago, went into administration in June after business was affected by competition from internet retailers, supermarkets and downloading.

Ernst & Young were called in as joint administrators and later announced the loss of around 700 jobs.

However, yesterday it emerged that HMV, Britain's largest music chain, had struck a deal to buy the Fopp brand, its website, and shops in Union Street, Glasgow, and Rose Street, Edinburgh, as well as London Convent Garden, Manchester, Nottingham and Cambridge.

A spokesman for HMV said that the six selected stores were all trading profitably before Fopp went into administration and they were hopeful the deal would help save around 70 jobs.

He added that the stores would operate independently of the main HMV chain in order to retain the distinct identity of the Fopp brand.

"We were drawn to the Fopp brand and are looking to preserve the separate identity and culture of the shops," he said.

"We are looking to reinstate the staff who had been working there as that is important in ensuring the Fopp culture is preserved. We are in the process of contacting them. We also want to keep the same product and customer mix."

Fopp was established in 1981 by ex-Virgin Megastore manager Gordon Montgomery and started life as A1 Sounds in the Savoy shopping centre in Glasgow. The first branch of Fopp, named after a track by 1960s and 1970s soul act the Ohio Players, was in Renfield Street in Glasgow.

It grew to become the third-biggest music retailer in the UK in terms of outlets and was one of Scotland's 250 top companies. However, in June Fopp cancelled book deliveries and on June 21 began accepting only cash transactions, blaming "card authorisation" problems.

Then its 50 branches across the country were closed and the company began a strategic review with its bankers.

At the time Mr Montgomery was quoted as saying the company was "experiencing difficulties". However, within days, the company had collapsed.