Entertainment retailer HMV is to reopen on Dublin's Grafton Street barely a year after it was forced to close its flagship store on the same street.

Owners Hilco Capital said yesterday the new branch would be located in the old A-Wear premises and would lead to the creation of 35 new jobs.

The store is expected to be up and running within three months.

HMV's former Grafton Street shop is now occupied by clothing retailer Massimo Dutti.

The opening of the new shop will bring to seven the new HMV outlets across the country, as well as 37 joint HMV-Xtra-Vision stores.

Re-opening a Grafton Street branch has been a key plank of Hilco’s Irish strategy. The firm, specialises in buying and turning around struggling retailers.

Chief executive of Hilco Capital Ireland Larry Howard said today: "HMV returning to Grafton Street has been a priority for Hilco Capital, and we're delighted to have secured this premises."

“We’re looking forward to bringing this iconic brand back to its spiritual home in Ireland.”

The 16 HMV stores in the Republic, including the Grafton Street branch, closed in February last year after the company’s receiver Deloitte decided the business was no longer viable.

The receiver blamed competition from web-based retailers and digital downloads compounded by high rents.

Under the deal with Deloitte in April, Hilco Capital acquired 141 HMV stores in the UK and Ireland in a deal worth an estimated £50 million (€59 million).

Separately, Hilco yesterday declined to comment on reports it was in the running to buy sports chain Elverys.

Several investors are said to be interested in acquiring the Mayo-based business, which employs 654 people in 56 stores across the State.

Hilco will have to fend off a strong challenge from UK group Sports Direct if it is to prevail in the race to buy Elverys.

Sports Direct, which is owned by UK billionaire and Newcastle United owner Mike Ashley, is thought to be preparing joint bid for the Irish chain with Lifestyle Sports.