News article

Zavvi announces store closures

Zavvi announces store closures
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Music retailer Zavvi has announced the closure of 22 outlets with the loss of 178 jobs, a development which may interest stock market investors.

Zavvi is currently on the market as a going concern by its administrators.

Tom Jack of Ernst & Young commented: "Despite record consumer demand since Christmas, it is no longer possible to support continued trading across all of the Zavvi stores."

Among the shops closing down are the Salford Quays branch in Manchester, the Clayton Square branch in Liverpool and the Great Western Designer Outlet branch in Swindon.

Woolworths' Entertainment UK was previously the main supplier of Zavvi, however that company went into administration at the end of November.

One of the reasons behind Zavvi's decline is the rise of digital downloads.

Last year, singles sales in the UK increased by 33 per cent thanks to downloads, reports the BBC.

Meanwhile, UK albums sales generally dropped by 3.2 per cent.ADNFCR-1681-ID-18964463-ADNFCR