Deathwatch - Zavvi goes under on Christmas Eve

24 December 2008

Bloody hell, another shop I was in just last night; I appear to be the grim reaper of the economically challenged.

Around 3,000 jobs are at risk after Zavvi went into adminstration this morning. The DVD and music retailer has been in trouble since the collapse of Woolworths; not only was Entertainment UK (the distribution arm of Woolworths) the major supplier to Zavvi, but according to the Guardian, Zavvi owed Entertainment UK over £100million.

Losing such a significant supplier will have no doubt forced Zavvi to try and negotiate terms with other suppliers; not an easy task during a downturn at Christmas.

Zavvi was formed from a management buyout of Virgin Megastores last Christmas. It's expected the 125 stores across the UK and Ireland will continue trading today and Boxing Day.

TOPICS:   High Street News   Economy


  • chrisg
    It was always going to happen once Virgin dumped it. They couldn't cope with seeing their megastore go under, so dump and run.
  • chrisz
    Pump and dump
  • Martin
    Please visit the Disney store. I'd love to see them gone from the high street.
  • Dank
    Crap name. Crap retailer. Hardly surprising to be honest. They had absolutely no redeeming features that I can possibly think of. I bet Richard Branson is breathing a sign of relief right now as well.
  • N P.
    Richard Branson doesnt need to breathe, he has people to do that for him!
  • N E.
    Any chance you could you visit Currys, Phones4U and HMV please?
  • MB
    Sad to hear about this. Zavvi had the occasional awesome deal. I just don't get people who think this is a good thing. With Zavvi gone there will be less competition and other places (including your beloved supermarkets) will feel its safe enough for them to raise their prices on DVD's and such. Anyway Zavvi was doing pretty well before the economic downturn (unlike Woolworths which was struggling even before) so it's quite likely someone will buy them out as the company was making money.
  • Dank
    I wouldn't be so sure that Zavvi were doing that well to be honest. They've been in financial doggy-do-do for a while and more-or-less caused Entertainment UK to go bust with unpaid promises of money.
  • Joff
    Based on no industry insider style information other than feeling it in my "waters", I predict Comet will be gone soon and possibly HMV too. High street stores must haemorrhage money in rents and rely on sales to get people through their door rather than Tesco's. I'm surprised Zavvi lasted this long to be honest after being ditched by Virgin, anyone with a business selling physical media is going to have a bleak future in the on-demand download culture we're adopting.
  • Dank
    I'm going to guess that Jessops will be the next to go into administration. Thing is, if they do Canon will be hit the hardest as 60% of all their cameras are sold through them.
  • che
    Hey there DANK what the hell do you know, Zavvi only actually owed EUK £40 million and Richard Branson paid that off 2 weeks ago!!!! So get your facts straight mate. Zavvi were not the only company to owe EUK money hows about Asda, Sainsburys, Morrisons, WHSmith, Tescos. I think you'll find the facts are that Woolworths have been writing blank cheques for their stock ever since they set EUK up which is where the real problem comes from. MB too true mate i can see HMV putting their prices up straight away so its us the consumer who loses out at the end of the day.
  • BigDan
    Please could you be first in the Boxing Day queue for the DFS (365 day) one-off sale ? That's one bunch of cnuts I'd love to see go under.
  • Kevin
    Why would Richard Branson pay off Zavvi's debts?
  • Andrew
    Instore prices always tended to be a little higher than most other places I thought.
  • che
    Kevin, Branson paid off the debts as part of the MBO clause which was put in place when he sold the Virgin Megastore chain to the existing management team. He has also been giving around £5 million each week since the EUK collapse to help buy stock.

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