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Business News Retail
Zavvi respond to media speculation
By CMU Editorial | Published on Tuesday 16 December 2008
As expected, Zavvi released an official statement on Friday following the news that its main supplier of CDs and DVDs, eUK, was going into liquidation. As possibly not expected, I completely forgot to report on it yesterday.
The retailer’s statement also dealt with those previously reported rumours that they too are experiencing financial difficulties, and that the added stress of eUK’s collapse, which forced them to suspend their online operations during the busy Christmas period, could force them into administration also.
The statement followed media reports on Friday that Ernst & Young, who have been advising the retailer on how to navigate all the current turbulence in the music retail sector, had been forced upon them by eUK’s administrators Deloitte because of the size of the retailer’s debts with the distributor. However, Zavvi’s statement denied that was the case.
Anyway, slightly delayed I know, here is Zavvi’s statement: “Zavvi Entertainment Group is disappointed to hear that the administrators for the Woolworth Group Plc have been unable to find a buyer for Entertainment UK – our thoughts go out to all the employees at eUK who have been affected by today’s decision”.
They continued: “Contrary to speculation, Zavvi can confirm that its creditors have not appointed Ernst & Young, however Ernst & Young have been providing invaluable advice and expertise to the group over the past few weeks since Entertainment UK (Zavvi’s main supplier) was placed in administration”.
And concluded: “Zavvi would like to reassure customers that it is dealing direct with suppliers to ensure that the right product is available in its 125 stores for Christmas. Zavvi is currently reviewing its distribution strategy and will announce plans in the near future”.
