UPDATE 1-Trans World Entertainment Q3 loss widens, shares fall

(Recasts, adds details, share movement)

Nov 21 (Reuters) - Trans World Entertainment Corp (TWMC.O) on Wednesday reporter wider-than-expected quarterly loss as a decline in music sales weighed on the company's results, sending shares down more than 10 percent.

The company reported a third-quarter loss of $14.3 million, or 46 cents a share, compared with a loss of $11.4 million, or 37 cents a share, a year ago. Sales fell more than 12 percent to $260.6 million.

Analysts were expecting a loss of 37 cents a share, before items, on revenue of $255.8 million, according to Reuters Estimates.

"We continued to achieve positive comparable store sales in home video, video games, electronics and boutique during the third quarter, however, these results did not offset the decline in music," Chief Executive Robert Higgins said in a statement.

The company's third quarter same-store sales fell 4 percent. On an average, the company operated 13 percent fewer stores during the quarter.

Earlier this month, the company had received a buyout proposal from Higgins, also the company's largest shareholder.

Trans World shares were trading down 56 cents at $4.92 in morning trade on the Nasdaq. They touched a high of $5.12 earlier in the session. (Reporting by Ankur Relia in Bangalore; Editing by Himani Sarkar)