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Zavvi goes into administration

 

Ernst & Young has confirmed that music and DVD store Zavvi is going into administration.

 

The closure of the UK's largest independent entertainment retailer may result in 3,400 job losses.

 

Zavvi suffered over the Christmas period after Woolworths's unit Entertainment UK went into administration last month.

 

The store used Woolworths as its main supplier and has had trouble finding stock following the high street shop's demise.

 

"This has resulted in considerable working capital difficulties," said Ernst & Young.

 

"Since EUK went into administration, and perhaps before, the impact of problems at EUK on the Zavvi group has been significant."

 

All 125 stores around the UK should be open as usual on Boxing Day for a post-Christmas sale.

 

Zavvi founders Simon Douglas and Steve Peckham said: "We have done all that is possible to keep the business trading, but the problems encountered with EUK, and particularly its recent failure, have been too much for the business to cope with."

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Posted
It's annoying, there's no Zavvi store here [Virgin became Republic; stupid shop!] so can't check out their discounts. Seems you can't buy from them online anymore!

 

They halted online orders when their distributors (Woolworths) died. I didn't expect Zavvi stores to die as I thought that Virgin still owned them (and they seem to have plenty of money).

Posted

Sucks. Was hoping Zavvi would move into where my local woolworths will be vacating but that won't happen now. Can always hope for HMV. But it's does suck as Zavvi are generally good for buying stuff from as I've always found them cheaper than HMV, especially for CDs.

Posted
I wonder who's next ? New Look ? Peacocks ? Wilkinsons ?

 

Apparently 15 different companies are to go by the wayside by the end of January next year according to the tabloids !

Yeah I saw that on the news as well. I thought how they could make such a bullshit claim and who they thought would go... I never thought Zavvi would be a casualty of it.

Posted
zavvi is shit n e way. HMV is where its at

 

huh? I thought all the cool kids today simply downloaded all of the music and movies they required. I'm ahead of the curve since I've done it for years

Posted
I seem to recall hearing that HMV are also currently in the shit - might be the end for them soon too!

 

Surely not? There's no other big chain stores like Zavvi/HMV are there?

Posted
I seem to recall hearing that HMV are also currently in the shit - might be the end for them soon too!

 

They aren't in the shit yet. Their profits are dropping rapidly though but they were making a ton prior to that.

 

I worked for them for 2 years, they have some crackpot plan that HMV stores will become more than just a shop a place where people will come and socialise about music, dvds and games. Quite how they will make money if people are just milling around is another thing all together.

 

It is interesting to notice most of their xmas adverts are for hmv.com and they have put a lot of emphasis on that side of things.

Posted
They aren't in the shit yet. Their profits are dropping rapidly though but they were making a ton prior to that.

 

I worked for them for 2 years, they have some crackpot plan that HMV stores will become more than just a shop a place where people will come and socialise about music, dvds and games. Quite how they will make money if people are just milling around is another thing all together.

 

It is interesting to notice most of their xmas adverts are for hmv.com and they have put a lot of emphasis on that side of things.

 

That's actually not a bad idea. If they arranged the shops a hell of a lot better, had some places to sit, and somewhere to grab a coffee it wouldn't actually be half bad.

Posted

Shame about Zavvi but a good bit business by Branson I must say.

 

Was in Zavvi last night and they had mega sale going on, some good bargains in there. Got Kinks greatest hits for my girlfriends dad and it was RRP £12 and had a £5 sticker on it, when i got to the till was a mere £3.50. Awesomes.

Posted
How can you prefer Zavvi it's more expensive and has less products.

 

HMV is always packed to the point of it's pointless lining up. Also, the less products thing? Crap. It just depends on the size of the store.


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