Tyneside musical stars have previously spoken of their admiration of the store, including Dire Straits’ Mark Knopfler.
He said he would spend hours gazing at the displays dreaming of the day he could have a guitar of his own.
Shop general manager, Alex Cole, said he was deeply saddened by the closure.
“Generations of musicians and music lovers, including my family and myself, bought their first instrument, listened to their first LP, or learned their first song within the iconic arcade store,” he said.
“The city will be a quieter place without it.”
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