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24 Dec 2008
Administrators from Ernst & Young have been appointed to entertainment retailer Zavvi.
Tom Jack, Simon Allport and Alan Hudson were appointed joint administrators for the UK's largest indepedendent entertainment business.
The adminstration is another blow to the high street, with both Whittard and The Officers Club sold on after administration in the last 24 hours. Woolworths is set to close for good, while MFI has already collapsed.
Begbies Traynor's Nick Hood has predicted as many as 15 major retailers could enter insolvency proceedings around the Christmas period.
Zavvi operates out of 125 stores in the UK and Ireland, employing 2,363 permanent staff and 1,052 temps. It was formed from a management buyout of Virgin Megastores in September 2007.
The retailer has struggled to bring in new stock after Woolworths' stock supplier arm Entertainment UK entered administration.
'Since EUK went into administration, and perhaps before, the impact of problems at EUK on the Zavvi Group has been significant. Minimal deliveries, no returns and worse trading terms are just some of the areas impacted,' said Jack.
'In the absence of a buyer for EUK, and with dire trading conditions on the high street, the Zavvi Group has seen a material fall in sales and the directors have now been forced to place parts of the group into administration.
The administrators intend to sell all or part of the business as a going concern. The stores will open as normal on Boxing Day.
'We would like to thank all of our employees for their commitment and support since the launch of Zavvi,' said joint founders Simon Douglas and Steve Peckham.
'We have done all that is possible to keep the business trading, but the problems encountered with EUK, and particularly its recent failure, has been too much for the business to cope with.'
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Visitor comments Add your comment
Defected DVDs from Zavvi.
I brought a box-set of 'Inspector Morse' in December 2008 from the Zavvi shop in Oxford, which has now closed. A number of the discs do not play on my DVD player. Also 1 of the discs is duplicated and 1 is missing. I have written 3 e-mails to Zavvi with unsatisfactory replies. I paid for the set with my debit card, but do not have the receipt. I am quite willing to go to the small-claim court if necessary.
Could you advise me about this problem, please, as I cannot enjoy my DVDs?
Yours Jane White
Posted by: jane white (mrs), 05 Mar 2009 | 00:00
Disgusting service!
I wrote to the administrators 18 February and have emailed on numerous occasions regarding a faulty PS2 I bought I sent a letter and copy of the receipt and have only had automated emailed responsed saying my query will be dealt with. I am relocating end of June and want this sorting before then. It is totally unacceptable.
Posted by: Halimah Dagarti, 29 Apr 2009 | 00:00
Inspector Morse DVD set
I have tried writing to you regarding the DVD set I bought before Christmas 2008 at the Zavvi store in Oxford. I have even sent the last letter by recorded delivery on 12/04/2009. I still have not had a reply. I have sent all the documentation you require, but still you do not reply. I realise you must be inundated with these problems but a reply would be pure courtesy on you part. I am very disappointed with your customer service. I now expect a reply ASAP!!!
Yours Jane.
Posted by: jane white (mrs), 30 Apr 2009 | 00:00
Zavvi vouchers
My son was given £40 of zavvi vouchers for christmas, we returned these to you on the 29 december 2008 we have a letter from the post office to say you have received then.
The last letter we received from you was dated 27 march 2009 with a `Claims Summary` stating the reference number 8082, voucher number, date of issue and the claim amount. and a comment that the amount is to follow. well we are still waiting, i think 8 months are a long time for a cash refund,
Posted by: Debra Dobson, 27 Aug 2009 | 00:00