Zavvi enters administration

MCV Staff 24th December 2008 Publishing

Entertainment retailer Zavvi has fallen into administration following the collapse of EUK, auditor Ernst and Young has confirmed.

The High Street chain – formally known at Virgin Megastores – has 114 UK stores and employs over 3,000 members of staff.

Ernst and Young will now act as administrator for Zavvi UK and liquidator for Zavvi Guernsey.

The 11 stores in Ireland are unaffected by the announcement.

Ernst and Young had previously been brought in as an advisor to the retailer after its main supplier, Entertainment UK, went into administration along with Woolworths. The EUK collapse forced Zavvi to close its website and deal direct with publishers. The retail chain also reportedly owe EUK over 100 million.

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