Redundancies At Zavvi

More than half of the staff at Zavvi's London headquarters have been made redundant, a total of 69 jobs.

The entertainment retail chain went into administration on Dec. 24. The move is roughly equivalent to Chapter 11 bankruptcy protection in the U.S. The stores are still trading.

The administrators Ernst & Young confirmed the redundancies in a statement.

"The changing dynamics of the supply chain into the business and the insolvency of much of the rest of the Group, including Zavvi's on-line operation, meant that the business could not continue to support a head office function without these changes," said the statement.

"The administrators would like to take the opportunity to thank all employees for the commitment that they have shown during this difficult period. The business continues to trade out of its full store portfolio, with further sales planned during the forthcoming weeks as the administrators continue to market the business for sale."

Zavvi was hit by the problems at Woolworths Group, whose wholesale entertainment distrubutor EUK was Zavvi's supplier.

The company launched 15 months ago following a management buyout of the Virgin Megastore arm of the Virgin Group. There are 125 Zavvi stores in the U.K. and Ireland with 2,363 permanent staff.

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