HMV, the U.K.'s leading entertainment retailer, is to close one of its central London stores.

The closure of HMV's 35,000 sq. ft 360 Oxford Street outlet comes into effect April next year, according to the company. HMV recently renewed its lease on its flagship London store, which is also located on Oxford Street, for a further 10-year term.

The retailer also operates a store located at the nearby Trocadero, in Piccadilly Circus, and runs an in-store shop in the Oxford Street branch of Selfridges.

The lease for 360 Oxford Street has been bought by U.S. fashion retailers Forever 21 at a cost of £13.75 million ($21.97 million). The move will enable HMV to pay off debt and invest in its other central London stores

Commenting on the closure, Simon Fox, HMV Group chief executive, said in a statement: "It will, of course, be extremely disappointing when HMV closes its doors on 360 Oxford Street next April, but we are also delighted that this transaction allows us to invest significantly in our other West End stores."

Staff from the 360 Oxford Street branch will be relocated to HMV's other central London stores following the closure, according to the company.

HMV also recently shuttered its Hampstead branch in London.