Zavvi jobs at risk as retailer goes into administration

Thousands of jobs are threatened at the music and DVD store Zavvi as it went into administration this week, it has emerged.

Professional services firm Ernst & Young has announced that the high-street retailer has been badly affected by the collapse of its main supplier, Woolworths’ DVD and music business Entertainment UK.

The store, formerly known as Virgin Megastore, was forced to cancel existing orders and stop taking new ones via Woolworths’ website, according to the BBC. Some 2,500 employees are now awaiting news as to whether their jobs are secure.

Virgin Megastore rebranded all 125 UK and Irish stores as Zavvi in 2007 following its sale to a management buy-out team.

The announcement follows news that tea and coffee specialist Whittards fell into administration this week. The 122-year-old company will remain on the high street after Ernst & Young, also its administrator, sold the firm to private equity company EPIC in a rescue deal.

Whittard has around 130 stores in the UK, employing around 950 staff.

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