Administrators cut 446 more jobs at Zavvi

LONDON: Administrators who control the bankrupt Zavvi group of entertainment stores said on Wednesday they will close 18 more stores and put another 446 people out of work. Zavvi, formerly Virgin Megastores, collapsed on Dec 24 and the company is being wound up by administrators Ernst & Young.

Joint Administrator Tom Jack said it was not possible to sell the business as a going concern. He said Zavvi, which was once Britain's largest independent retailer with 125 stores in Britain and Ireland, will now cease to trade.

Book and music retailer HMV announced on Jan 14 it had agreed to buy 14 of Zavvi's stores in a 2 million pound ($2.8 million) deal.

Jack said HMV has agreed to buy another five Zavvi stores for an undisclosed sum. Another five stores were sold to Head Entertainment, a business jointly led by former Zavvi chief executive Simon Douglas. Head is expected to complete the purchase of another three stores within a few days.