The joint administrator of U.K. entertainment retailer Zavvi, which ceased trading at its remaining stores on Feb. 20, has sold the Internet rights for the Zavvi name to an online retailer based in Guernsey in the Channel Islands. The Zavvi e-tail site is now back up and running under the new ownership after ceasing to take orders in December.

The location allows companies to take advantage of a tax loophole regarding VAT, the EU-wide sales tax, enabling British shoppers to purchase CDs and DVDs for mail order without paying the VAT.

Joint administrator Ernst and Young has confirmed that an agreement was reached between Zavvi U.K., Zavvi Guernsey and Gucco Internet Supplies, following the final closure of Zavvi stores in the U.K. and Ireland. Gucco Internet Supplies, a subsidiary of online entertainment retailer the Hut Group, has bought various intellectual property rights.

"Following the sale of 19 stores to HMV and seven stores to Head Entertainment LLP, the group ceased to trade," said Tom Jack, one of the appointed administrators for Zavvi U.K., in a statement. "However, we continued to progress interest in other assets of the group and are delighted to have been able to complete the sale of the group's intellectual property."

Some of the rights included in the deal are the Zavvi brand, the Zavvi transactional web site zavvi.co.uk and associated infrastructure. The Web site's home page now features a sale for entertainment-related products alongside sports and leisure products, perfume and lingerie.

Zavvi entered administration - roughly equivalent to Chapter 11 bankruptcy protection - on Dec. 24. Major U.K. entertainment chain HMV acquired 19 of Zavvi's stores while another seven leases were taken on by Head Entertainment LLP, a business led by Les Whitfield and former Zavvi chief executive Simon Douglas.

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