The flagship Allans Billy Hyde music stores in Melbourne, Sydney and Adelaide will remain open.
Con Gallin, managing director of Australian Musical Imports, have bought the bulk of Allans Billy Hyde assets after months of negotiating with receivers Ferrier Hodgson.
The stores in Melbourne, Blackburn, Sydney, Alexandria, Parramatta, Adelaide and Southport will continue to trade, with most employees at those stores keeping their jobs.
But some smaller stores in far flung locations such as Cairns will close along with the Allans Billy Hyde warehouse.
Australian Music Group Holdings, which trades as Allans Billy Hyde, was placed into receivership in August by one of its creditors.
Unsecured creditors were owed approximately $13.5 million and employee entitlements were estimated to reach about $3 million.
Mr Gallin, whose first part-time job was at Allans Music in Melbourne, blamed management rather than the industry for the company's decline.
"The management, both current and previous, lacked music retail expertise and as a result lost large amounts of money," he said.
"They couldn't adjust the company expenses to meet reality.
"We're very, very confident it's going to go well, but it's an enormous task to have to do so quickly at this time of the year."
Mr Gallin plans to have the flagship stores restocked and open for trading by next week.
He forecast a period of consolidation before the possibility of opening more Allans Billy Hyde stores.
"We'll need six months to get settled then from there we can look at a bit more expansion and maybe getting back into some of those other locations."
After being placed into receivership Allans Billy Hyde, Australia's largest independent music retailer, continued trading until its stores were closed last weekend, with its 513 employees sacked.
Mr Gallin said most workers at the seven flagship stores would return when those stores reopened.
Another 80 employees had already been made redundant in recent months.
A spokesman for Ferrier Hodgson confirmed Australian Musical Imports had purchased the company's brand name, website and domain names, trade marks and intellectual property.
Mr Gallin is also director of Gallin's Musician's Pro Shop retail stores.