Zavvi goes into administration
The global financial crisis is making its presence felt with a slew of high profile businesses closing shop because of the inability to maintain operations. This sad trend is happening all over the world and it looks like every country has its own set of victims.
In the UK, a number of establishments have also been feeling the pinch.
With the ceasing of operations of supplier Entertainment UK, companies that relied on it like Woolworths and Zavvi (http:// www.zavvi.co.uk/) had to do some drastic retooling of its operations. This meant, in the case of Zavvi, closing down its online retail operations.
Now it looks like Zavvi’s woes are not yet over. Despite the fact (as previously reported here) that it tried selling Xbox 360s at a cheap price in order to look attractive to customers, it still wasn’t enough of a gamble. Ernst & Young has reported that the the retailer has now gone into administration.
Zavvi will continue to remain open for post-Christmas sales. It has even come out with new offers and further price reductions as a way of generating more sales. About 3,400 jobs are in danger of being lost with the chain’s closure. Zavvi’s current woes has put to light the question of whether a music store is still a viable choice on the high street. The rise of digital downloads and website retail that offer bigger discounts are growing threats to the continued existence of music stores not just in the UK but all over the world.
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