Zavvi’s administrators, who yesterday announced the closure of another 18 stores, said that HMV’s purchase will save 269 jobs. The purchased Zavvi stores are said to be in key locations where HMV has little or no presence.
HMV’s purchase, which was funded by selling new shares, follows the firm’s announcement that its sales had climbed 2.9% in the five weeks to January 3. The purchase of the new stores are expected to cost HMV a total of £2 million, a sum which includes the necessary rebranding of each store as well as possible renovations.
Zavvi went into administration late in December. Since then it has been closing or selling its fleet of stores. Its administrators are still hoping to sell the business as a going concern.