Zavvi enters administration again and says it cannot fulfil outstanding orders

UK entertainment retailer Zavvi has entered administration and ceased trading while the insolvency process plays out, according to a notice on the company’s website reported by Eurogamer. BDO LLP has been named as the administrator.

The notice tells customers that the company “is unable to fulfil any outstanding orders or pre-orders” and that it will not accept returns of any items.

Zavvi said it understands that people who paid for goods they have not received will be worried about their money. It recommends that those customers get in touch with their bank, card issuer or payment provider to find out whether they can recover the payment. Eurogamer reports that the company has also set up an email address for customer inquiries, though it appears likely to return mostly automated replies.

Eurogamer notes that reports of Zavvi’s plan to appoint administrators surfaced about a month ago. At the time, the stated aim was “protecting the business and its stakeholders and securing the best possible outcome”. According to the outlet, it is not yet clear whether the process is an attempt to rescue the business or to recover money for investors before it shuts down, and the appointment does not necessarily mean Zavvi will close permanently.

This is not the first time Zavvi has gone into administration. According to Eurogamer, the company was formed in 2007 when Virgin Megastores was spun off from Virgin as an independent business. At the time it was one of the UK’s largest independent entertainment retailers. It entered administration for the first time about a year later. The Hut Group bought Zavvi out of administration in 2009, and the retailer later shifted its focus toward pop culture and entertainment merchandise.