Zavvi shuts another 18 stores

Home entertainment retailer, Zaavi, has closed 18 of its stores. It comes in a month which has already seen it shut over 20 stores.

Home entertainment retailer, Zavvi, has closed 18 of its stores. It comes in a month which has already seen it shut over 20 stores.

The closures will range from central London to Glasgow. It will lead to the loss of over 350 jobs.

The remaining 74 stores will remain open for business as the administrator, Ernst & Young, continues to attempt to sell the business as a going concern.

The administrator says it has received “over 70 expressions” of interest” but none wanted to take on the entire business.

The chain went into administration on Christmas Eve, after a month of difficult trading after its main supplier Entertainment UK followed sister company Woolworths into administration in November.

The Zavvi group was the UK’s largest independent entertainment retailer and sells DVDs, CDs and games. It was formed after a management buy-out of the Virgin Group’s Virgin Megastore division in September 2007.

The retailer posts its sales slump following news last night (January 13) that its chief executive Chris Ronnie’s position is precarious over the seizure of his stake in the business by the now defunct Icelandic bank Kaupthing.

The other directors, including new chairman and former Selfridges boss Sir David Jones, were unaware of the transfer until Kaupthing’s administrators informed them yesterday morning, and have subsequently begun an investigation.

Latest from Marketing Week

NOT REGISTERED? IT'S FREE, QUICK AND EASY!

Access Marketing Week’s wealth of insight, analysis and opinion that will help you do your job better.

Register and receive the best content from the only UK title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work. The more we know about our visitors, the better and more relevant content we can provide for them. And, yes, knowing our audience better helps us find commercial partners too. Don't worry, we won't share your information with other parties, unless you give us permission to do so.

Register now

THE BEST CONTENT

Our award winning editorial team (PPA Digital Brand of the Year) ask the big questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.

THE BIGGEST ISSUES

From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we are your guide.

PERSONAL AND PROFESSIONAL DEVELOPMENT

Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Having problems?

Contact us on +44 (0)20 7292 3711 or email subscriptions@marketingweek.com

If you are looking for our Jobs site, please click here