Administrators for music, DVD and games retailer Zavvi said have decided to close 15 of the chain’s UK stores with 295 people due to lose their jobs.
Ernst & Young said the closures would take place immediately, while they would continue to trade the remaining 48 stores throughout the UK.
Zavvi - the former Virgin Megastore chain - fell into administration on Christmas Eve after it was crippled by the collapse of Woolworths’ Entertainment UK wholesaling division.
Ernst & Young secured the sale of 14 Zavvi outlets – including 5 in the Republic – to rival music group HMV, safeguarding 110 jobs. However, it did have to close its branch in Blanchardstown.
Joint administrator Tom Jack said that while keeping stores open, E&Y had to manage the company’s cost base with a view to maximising the returns to its creditors.
“This includes a constant re-evaluation of our property portfolio in line with trading performance,” he said. “Consequently, with reducing stock levels we have had to manage our cost base accordingly and close a further 15 stores.”
He said E&Y was still looking to progress further with “a number” of parties interested in the business, so did not have a formal closure plan for the entire store network.
E&Y said the workers affected by the job cuts would receive support from the Insolvency Service’s Redundancy Payment Office and Jobcentre Plus.
By the end of today, 55 of Zavvi’s UK stores will have shut their doors, with a loss of 826 jobs. Zavvi, which employed 2,300 permanent staff, went into administration after it was crippled by the collapse of Woolworths’ Entertainment UK wholesaling division.
PA