Wed, 18 Feb 2009 360 jobs saved but final Zavvi shops to close by end of the week

The administrators of failing music, games and DVD chain Zavvi, have announced good and bad news for the remaining high street stores.

The Joint Administrators from Ernst & Young said around 360 staff jobs should be saved as HMV and Head Entertainment purchase many of the remaining stores still trading.

"Another five stores have been sold to HMV, meaning 111 employees will transfer across to HMV immediately and over the course of the next two weeks these Zavvi stores will be rebranded as HMV," said Tom Jack, Joint Administrator for Zavvi.

"In total, HMV has purchased 19 stores in the UK and Ireland securing jobs for 380 employees."

Meanwhile Head Entertainment, a business run by Les Whitfield and former Zavvi Chief Executive Simon Douglas, is expected to continue to trade the stores using the stock purchased in this deal and from other sources going forward.

"Five stores, 160 employees, have also been sold to Head Entertainment, with a further three stores, 89 employees, expected to complete by 20 February. This would ensure the transfer in total of another 249 jobs in a deal that also includes the sale of all remaining Zavvi Limited stock," Jack added.

However, the good news was blunted by the announcement that the remaining Zavvi stores will close by Friday with the loss of 446 jobs including the flagship Oxford Street, London branch.

Zavvi filed for bankruptcy protection on Christmas Eve last year blaming the closure of famed high street name Woolworths, who themselves finally shut up shop just after Christmas.

Zavvi, formerly Virgin Megastores, relied on Woolworths' distribution business Entertainment UK to supply its DVDs, CDs and computer games.

Zavvi had a total of 125 branches across the UK and Ireland employing over 3,400 staff.

In recent weeks Zavvi stores have been offering CDs, DVDs, games, books, clothing and iPod accessories at up to 50 per cent off in an effort to shift remaining stock.

Earlier this week high street camera retailer Jessops said they would close around 17 stores across the UK.

Jessops sells a range of cameras, digital and video equipment, darkroom products, film and accessories.

The company said it has begun a "consultation" to decide the future of the threatened stores, which it claims are no longer financially viable, with 100 jobs potentially at risk.

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