British music retailer Zavvi said today that it was shutting 22 stores in the UK with the loss of 178 staff as Britain suffers from a deepening economic slowdown.
Zavvi was formerly the Virgin Megastore chain, owned by Richard Branson's Virgin Group, but changed its name in Britain and Ireland after a management buy-out in 2007.
'Despite record consumer demand since Christmas, it is no longer possible to support continued trading across all of the Zavvi stores,' said Tom Jack of Ernst & Young - the financial experts tasked with helping to save the group from total collapse.
'Unfortunately the current difficulties faced on the UK high street seem to be discouraging retailers from investing in a significant number of new stores,' he added. Zavvi will continue trading at 92 stores, Jack said.
A number of high-profile British retailers have disappeared in recent weeks as Britain stands on the brink of recession. General retailer Woolworths earlier this week closed the doors on a century of trading. Clothing-to-food retailer Marks & Spencer said yesterday it is cutting up to 1,230 jobs and shutting 27 stores in the UK.
Zavvi Ireland is not subject to any formal insolvency proceedings. Zavvi has 11 stores in the Republic and five in Northern Ireland.
