Zavvi closes 22 stores

Home entertainment retailer Zavvi has shut 22 of its stores today (8 January) following the appointment of an administrator on Christmas Eve. The chain, previously Virgin Megastore, has been caught up in the financial collapse of Woolworths.

Zavvi was supplied by Entertainment UK, the distribution arm of Woolworths, and it was left without key music releases, such as Take That’s Circus, which it was forced to source elsewhere. The chain was forced to suspend its online shopping site in mid-December.

Ernst & Young says that it will continue to trade the remaining 92 Zavvi stores and is beginning a deeper discount sale tomorrow (9 January).

Stores to close include Liverpool Clayton Square, Newcastle Royal Quays and York McArthur Glenn Outlet.

Joint administrator Tom Jack says: “Despite record consumer demand since Christmas it is no longer possible to support continue trading across all of the Zavvi stores. However, we intend to continue to trade the remaining Zavvi portfolio with a view to selling all or part of the Zavvi business as a going concern.”

Zavvi launched after a management buy out of Virgin MegaStore in September 2007.

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