Zavvi goes into administration
High-street entertainment retailer Zavvi has gone into administration due to the worsening economic climate and stock problems caused by Woolworths, and its disruption arm Entertainment UK, going into administration.
The impact of Woolworths and its disruption arm, Entertainment UK, going into administration is 
now evident to see as it’s resulted in another company also falling into administration. High-street retailer Zavvi, which sells DVDs, CDs and computer games has struggled with stocking issues since Entertainment UK, which supplied the company with a significant share of its products, ceased to operate following Woolworths going into administration. The impact of this originally forced Zavvi to stop taking orders from its online site but now the wider impact is becoming clear.
Zavvi and Woolworths are not the only high-street stores that have gone into administration following the worsening economic climate and the recession, The Officers Club and Wittards have also been placed in administration. Zavvi is expected to re-open on Boxing Day for its traditional post Christmas sales and administrators Ernst & Young are intending to keep all Zavvi stores trading while a buyer for all or part of the company is found. The Irish arm of Zavvi is not currently affected by the move to put the company into administration.
The search to find a buyer for Woolworths is still ongoing and it looks likely the company will completely disappear from the high-street as buyers are only interested in individual sites and not the whole company. It’s highly likely that Zavvi will face similar problems.
Zavvi was formed in 2007 following a management buyout of Virgin Mega Stores and the company has 127 stores across the UK. Over three thousand jobs are now under threat at the company.
