OVER 100 Irish jobs at troubled music and entertainment chain, Zavvi, were saved in a last-minute deal with rival HMV yesterday.

Zavvi’s provisional liquidator, David Hughes of Ernst & Young, confirmed that five of its stores in the Republic will be sold immediately to HMV in a move that will save 110 jobs in the business. The staff will transfer to the new owner.

However, Ernst & Young announced that four stores in Northern Ireland, at Belfast, Derry, Newry and Newtownabbey, are closing with the loss of 60 posts, while another in Blanchardstown, Dublin, that employs 13 people, faces the same fate.

The future of a further 78 posts in four other shops in the Republic was still in doubt last night, as the HMV deal only covered units in Dundalk, Limerick, Newbridge, Dundrum and Liffey Valley in Dublin.

The provisional liquidator will explore all other interest in the four shops still operated by Zavvi in Athlone, Cork, Kilkenny and Sligo.

HMV is not thought to be interested in buying these outlets, but other parties may be. HMV has also agreed to buy nine stores in Britain, where 159 people are working.

The deal came after Ernst & Young, which also acts as the group’s administrator in Britain, also announced that it was closing 18 stores in Britain and Ireland with the loss of 366 jobs. These included the outlets in Blanchardstown and the North.

Zavvi operates the former Virgin Megastore chain in the Republic. The group employed 201 staff in 11 outlets here.

A spokeswoman for Ernst & Young said that Zavvi’s Irish stores have been in “provisional liquidation” since December 31st, 2008, and that the remaining outlets in Ireland would continue to trade while the provisional liquidator and administrator seek a buyer.

Ernst & Young, appointed as administrator in Britain on December 24th, said it was seeking to sell all or part of the 73-store Zavvi group as a going concern.

However, they were forced to close 22 stores and cut 178 jobs on January 8th last.

Joint administrator, Tom Jack, said that the firm had received 70 expressions of interest in the chain, but none of the prospective buyers was interested in acquiring the entire chain. He described the HMV deal as a great result for the stores’ workers and customers.

Mr Jack added that he and his colleagues are continuing talks with a number of interested parties and are “optimistic that this could lead to the sale of further stores and retention of staff” in Ireland and Britain.