Zavvi – the UK's largest independent retailer of games, music and film goods – fell into administration on Christmas Eve. The retailer’s demise was largely a knock-on effect from the fall of Woolworths and its wholesale distributor EUK.
Ever since EUK fell into administration late in November (before officially closing in mid-December), Zavvi has experienced difficulties in securing stock. Simon Douglas, founder of the retailer, said at the time: “We have done all that is possible to keep the business trading, but the problems encountered with EUK, and particularly its recent failure, have been too much for the business to cope with.”
The group’s 125 stores remain open, for now, while the company’s online shop has been axed. Over half of the firm’s head-office staff have been made redundant, while the fate of Zavvi’s 3,400 workforce hangs in the balance.
Yet a spokeswoman for administrators Ernst & Young claims that there is still a notable level of interest in buying the group as a whole or in parts. “We are continuing to trade the business,” she tells Edge, adding that the group is still receiving interest in buying the business and its stores.
The spokeswoman couldn’t specify which businesses she claims have shown an interest, nor would she specify which business sector the parties reside in.
In regards to the administrator’s outlined plan for the weeks and months ahead to keep the business as a going concern, the spokesperson simply claimed that “it’s too early to say.”
Back in September 2007, Virgin Group’s Richard Branson sold his shares in Zavvi for an undisclosed sum.