Administrators today disclosed closure of another 15 stores of the DVD, music and games retailer, Zavvi, putting 295 employees out of work.

Ernst & Young announced that 15 stores would be closed immediately, while trading at the remaining 48 stores of the chain throughout the UK will continue.

Zavvi, formerly known as Virgin Megastore, crippled by the collapse of Woolworth’s wholesaling division, Entertainment UK, went under administrator in December 2008.

According to joint administrator Tom Jack, Ernst & Young had to manage Zavvi’s cost base while stores were being kept open, so that returns to creditors could be substantially maximised. This included continuous revaluation of property folio in line with trading results. As a result, with reduction in stock levels, cost base had to be managed accordingly by closing 15 more stores, explained Tom Jack.

He further added that since Ernst & Young was still looking for more number of parties which may be interested in Zavvi’s business, it has planned to close store network only partly.

Jobcentre Plus and Insolvency Service’s Redundancy Payment Office extend support to workers who will be affected by job cuts.

By the end of 30th January, 55 of Zavvi’s UK stores have been closed resulting in loss of 826 jobs. 200 jobs were saved this year after HMV decided to buy 14 of Zavvi’s stores in the UK and Ireland.

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