242 jobs axed as more Zavvi shops close

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The Independent Online

Administrators of music and games retailer Zavvi announced plans to close another 17 stores today, with the loss of 242 jobs.

Ernst & Young said it would continue to trade at the group's remaining 31 outlets and it remains hopeful a sale of some or all can be achieved.

Zavvi - the former Virgin Megastore chain - went into administration on Christmas Eve after it was crippled by the collapse of Woolworths' Entertainment UK wholesaling division.

E&Y's joint administrator Tom Jack said: "We are in detailed discussions with two interested parties and it is our intention to continue to trade all remaining UK stores with a view to their sale as a going concern."

Zavvi was the country's largest independent entertainment retailer, with 114 stores in the UK and 11 in Ireland. It had more than 2,300 full-time staff when it went into administration and today marks the fourth round of store closures since then.

The firm was crippled by the collapse of EUK because it was the company's main supplier and its November failure left Zavvi unable to take customer orders.

E&Y said the workers affected by the job cuts would receive support from the Insolvency Service's Redundancy Payment Office and Jobcentre Plus.

The stores being closed are in Aberdeen, Blackpool, Camberley, Carlisle, Chester, Coventry, Denton in Manchester, Derby, Harlow, Hemel Hempstead, Hereford, Loughborough, Sheffield's Meadowhall Centre, Shrewsbury, Swindon, Walton-on-Thames, and York.