Broadmead Zavvi relaunched as Head after director buy-out

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Thursday, March 26, 2009
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This is Bristol

The jobs of 27 staff at a Bristol branch of failed music retailer Zavvi have been saved after the shop was bought out by a former director.

Staff at the shop in the Mall Bristol, Broadmead, now work for the newly re-branded Head Entertainment, a business led jointly by former Zavvi chief executive Simon Douglas.

But the buyout by Mr Douglas, who has bought eight former UK Zavvi stores, did not include the Cabot Circus branch, which closed in February with the loss of 30 jobs.

Zavvi's branch at The Mall, Cribbs Causeway also closed, making 25 staff redundant.

Despite the change in branding, the Zavvi branch in the Galleries was rebranded as Head with no disruption to customers, remaining open throughout.

Head focuses on selling cut-price DVDs, music and computer games in a bid to scoop bigger rivals such as supermarkets.

Zavvi – formerly Virgin Megastore – fell into administration on Christmas Eve after the collapse of Woolworths' Entertainment UK wholesaling division.

It meant Zavvi had difficulties in sourcing stock and was forced to enter new trading arrangements, which themselves collapsed.

Paul Tatlow, store manager of the Galleries branch of Head Entertainment said: "I worked for the shop when it was branded Virgin and when it became Zavvi.

"All of the staff were saved when the shop was taken over and are delighted to be working for their new boss.

"We've changed our business model in that we focus on selling competitively priced goods instead of targeting new releases, which were often sold much cheaper by the supermarkets – think of us like TK Maxx, you can get last season's goods at much lower prices.

"We do also sell new releases but only where we can compete on price with others, such as the new Lily Allen album, for example."

Around 1,000 jobs have been lost since Zavvi, which had 130 stores across the UK, went into administration.

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    by Phil Taylor, Surrey

    Thursday, March 26 2009, 10:52AM

    “Just a friendly warning for all the staff of "Head". In the space of just 15 months Simon Douglas led the Zavvi chain to bankrupcy with debts of £109 million . Zavvi owed this entire amount to EUK (a company owned by Woolworths for which my best friend worked) and this debt is one of the main reasons that Woolworths finally crashed. However, Douglas spun it brilliantly by unashamedly blaming Woolies for Zavvi's collapse! Now, for a song, he has bought all the remaining stock from the administrators and has taken only very short-term leases (some as little as 3 months) on 8 former Zavvi stores. It doesn't take Einstein to work out that these are merely short-term clearing houses and I'm sorry but you don't need to be Nostadamus to predict where "Head" will be in 9 months time.”

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