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News - 24 December 2008
Zavvi succumbs to the recession
Ernst & Young has announced that the Zavvi chain of music and DVD shops (formerly Virgin Megastores), which has a branch in Brighton’s Churchill Square has gone into administration on Christmas Eve.
The chain was badly affected by the demise of Woolworths’ music distribution arm - Entertainment UK (EUK) - which supplied a large percentage of its stock but went into administration in November. So desperate was the company’s plight that they were forced to stop website sales. The administrators intend to continue trading with a view to selling all or part of the business.
Whittards, which also has an outlet in Brighton and menswear chain The Officers Club have also gone into administration.
Earlier this week, insolvency specialists Begbies Traynor predicted 15 national and regional chains will collapse early in 2009.
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