Store chain Zavvi in administration

MUSIC, games and DVD retail chain Zavvi, which has a branch on Wheeler Gate, Nottingham, was placed into administration on Christmas Eve.

It comes only weeks after the group's main supplier, the Woolworth subsidiary Entertainment UK, also went into administration.

The Zavvi Group is the UK's largest independent entertainment retailer trading from 125 stores across the UK (114) and Ireland (11) currently employing 2,363 permanent staff and 1,052 temporary staff.

The Group was formed from a management buy out of the Virgin Megastore division of the Virgin Group in September 2007.

Tom Jack, joint administrator woth accountants Ernst & Young, said: "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.

"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."

Tom added "The Administrators intend to continue to trade Zavvi UK with a view to selling all or part of its business as a going concern.

"We are grateful for the continued support of all employees during this difficult time and would like to thank everyone at Zavvi for their commitment and hard work as the business continues to trade."

Simon Douglas and Steve Peckham, the Group's founders, added: "We would like to thank all of our employees for their commitment and support since the launch of Zavvi. 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."

It is intended all stores will open as normal today.