January 8, 2009 11:18

Zavvi closes 22 shops with immediate effect

Hundreds of jobs are lost in the high street cull

Music chain Zavvi has closed 22 of its stores with immediate effect, administrates Ernst And Young confirmed today (January 8).

The retailer was forced into administration in December after being heavily affected by the closure of Woolworths, which also owned Zavvi's main supplier, Entertainment UK.

The closures have resulted in 178 job losses. Among the stores to close is Liverpool's Clayton branch, which has cut 28 jobs alone.

Zavvi's remaining 92 stores will remain open, and a sale offering up to 50 per cent off stock is due to start on Friday (January 9).

Tom Jack of Ernst And Young told the BBC that the continuing crisis affecting the UK high street had left the administrators with no option but to close stores immediately.

"Despite record consumer demand since Christmas, it is no longer possible to support continue trading across all of the Zavvi stores.

"Unfortunately, the current difficulties faced on the UK high street seem to be discouraging retailers from investing in a significant number of new stores."

Jack added that despite there being 60 parties interested in owning all or part of Zavvi, the retailer was yet to complete any deal.

Zavvi is one of only two major UK high street entertainment retailers, the other being HMV.

The following Zavvi stores have closed (number of staff job losses are in brackets):

Ashford (Designer Outlet) (8 staff)
Ayr (5)
Bideford (Atlantic Village) (7)
Braintree (7)
Braintree (Freeport Village) (7)
Bridgend (Welsh Designer Outlet Village) (8)
Castleford Outlet (8)
Chatham (13)
Edinburgh (Cameron Toll) (4)
Hempstead Valley (9)
High Wycombe (Octagon) (8)
Huddersfield (7)
Liverpool (Clayton Square) (28)
Livingston (McArthur Glen Outlet) (5)
Manchester (Salford Quays) (5)
Mansfield (McArthur Glen Outlet) (6)
Newcastle (Royal Quays) (6)
Sterling Mills (10)
Street (Clarks Village) (7)
Swindon (Great Western Designer Outlet) (8)
Torquay (5)
York (McArthur Glen Outlet) (7)