Zavvi Closes 22 Stores With Immediate Effect

Troubled music retailer Zavvi has today (January 8th) closed 22 of its stores with immediate effect, administrator Ernst & Young said.

The administrator said it was still battling to keep the company alive but it was "no longer possible to support continued trading across all of the Zavvi stores”.

The music retailer, formerly Virgin Megastore, fell into administration on December 24th, threatening the jobs of more than 2,000 people.

Ernst & Young said the remaining 92 stores would offer deep discounts while it searches to find a buyer.

The company has suffered since the demise of Woolworths, which closed the last of its stores on Monday (January 6th).

The store relied on Woolworths' distribution branch Entertainment UK (EUK) to deliver its CDs, DVDs and video games.

Zavvi stopped deliveries and online trading last November after the long-established high street store collapsed.

Click here to read Jason Gregory’s look at the affect the digital world has had on stores like Woolworths and Zavvi.