Zavvi closes its Newcastle store
The central Newcastle branch of music and DVD retailer Zavvi has shut down today with the loss of 31 jobs as as administrators Ernst & Young closes a further 15 outlets nationwide.
The former Virgin megastore in the Monument Mall on Northumberland Street has been having a sale in recent weeks since Zavvi hit problems through the fall of Woolworths and its music distruibution arm.
The remaining 48 stores in the Zavvi chain will continue to trade.
Tom Jack, joint administrator, said: "We continue to trade 48 stores in the UK, however in doing so we have to manage the cost base of the company with a view to maximising returns to creditors.
"This includes a constant re-evaluation of our property portfolio in line with trading performance. Consequently, with reducing stock levels we have had to manage our cost base accordingly and close a further 15 stores.
"At this time we are continuing to look to further progress interest from a number of interested parties and consequently do not have a formal closure plan for the entire store network.
"We are extremely grateful to the staff and management at all stores and the head office for their fantastic support throughout this difficult time.
"We would like to thank Job Centre Plus and The Redundancy Payments Office for their continued support in this matter."
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