The council had decided to take HMV to court over the performance in March after it found the store in question did not have the appropriate entertainment licence.

However, the council has now agreed to drop the charges providing HMV agrees to pay the equivalent of the £21 cost of the licence to the local mayor's charities.

The council had previously said HMV had been given the opportunity to apply retrospectively for the licence, but the retailer says this had ...