Zavvi becomes the latest retailer to fall into administration

Zavvi, formerly Virgin Megastores, has gone into administration. It comes only weeks after the group's main supplier, the Woolworths subsidiary Entertainment UK, also went into administration. Zavvi is the UK's largest independent entertainment retailer trading from 125 stores across the UK and Ireland, and currently employing 2,363 permanent staff and 1,052 temporary staff. The company was formed from a management buyout of the Virgin Megastore division of the Virgin Group in September 2007. Tom Jack, Joint Administrator, said: "In the absence of a buyer for EUK, and with dire trading conditions on the high street, the Zavvi group has seen a material fall in sales and the directors have now been forced to place parts of the group into administration."

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