American consumer electronic retailers aren't the only ones suffering. Zavvi, one of the largest independent retailers in the entertainment biz just filed for a type of bankruptcy protection. Zavvi was created by the buyout of Virgin Megastores, and even the new name couldn't save them.
What's to blame?
Zavvi's main supplier, EUK, collapsed last month, leaving Zavvi no way to fulfill orders. No CDs or DVDs to sell means no way to keep the doors open.
The company has been appointed administrators who will try to salvage as much of the company to benefit its creditors - in any way. So, the stores will open the day after Christmas for post-holiday sales.
In a statement, the founders of the group, Simon Douglas and Steve Peckham, thanked
employees for their support since last year's buyout from the Virgin Group. "We have done all that is possible to keep the business trading, but
the problems encountered with EUK, and particularly its recent failure,
has been too much for the business to cope with."
Their website just says, "Oops, we seem to be having a few problems. Apologies for any inconvenience this may have caused"
Will there be anyplace left to go and buy a CD besides Walmart and Target? It's getting pretty grim out there. Where do you go to buy your music? Or have you just given up and switched strictly to downloads? —Leslie Shapiro
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