Zavvi: no closures this week

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Virgin Mobile staff have been assured by Zavvi administrator Ernst and Young no store closures will be made this week.

Entertainment retailer Zavvi went into administration on Christmas Eve. Ernst and Young have closed 22 of the chain’s 125 stores across the UK and Ireland, which in total employed 2,363 permanent staff and 1,052 temporary staff.

Five of the 22 stores closed featured Virgin Mobile concessions, affecting 41 staff.

A Virgin Mobile spokeswoman said the company was looking at how to redeploy a number of those staff within other channels.

A company source said: “We are concentrating our efforts on our people and the strategy has been clearly articulated internally.”

Despite the collapse of Zavvi, along with high street retailer Woolworths, which was a large reseller of Virgin Mobile prepay handsets, the company maintains its mobile contract business is growing steadily through its own channels.

Meanwhile, Zavvi rival HMV has announced it will buy 14 of the collapsed chain’s stores at an estimated cost of £2 million, and is in talks to purchase more. HMV’s purchase is said to save 269 jobs.

 

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