Administrators from Ernst & Young have been appointed to entertainment
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.’
Does Darwin's theory apply to taxation? Colin ponders...
The EC has been instructed to draft a European Union (EU) directive authorising an EU financial transaction tax, which would apply to ten of the EU’s 28 member states
Just one half of UK practices have implemented a pricing structure around auto enrolment implementation and advice - with many suffering increased costs
Deloitte's north-west Europe foray; BDO, Smith & Williamson investment paths; Shelley Stock Hutter; and Wilkins Kennedy discussed by editor Kevin Reed on our Friday Afternoon Live broadcast