The Hut has bought the rights to use the brand from administrators and is relaunching . In addition to the DVDs and CDs, The Hut is also planning to sell items such as lingerie, perfume, sports equipment and electrical products.
Like many home entertainment retailers The Hut exploits a tax loophole in the Channel Islands allowing products such as CDs and DVDs to be sold VAT-free. The retailer claims to have around 16% of the online home entertainment market.
The Hut's acquisition of Zavvi is the second purchase of a high street brand by an online retailer in a month. In February Shop Direct, the internet shopping portal owned by the Barclay brothers,
Separately, administrators are also looking for buyers of menswear chain Principles and Shoe Studio Group, following the collapse of fashion group owner Mosaic.
Mosaic has been hit by the slump in consumer spending and the collapse of Icelandic retail group Baugur, which owned 49% of the group. Other Mosaic brands -- Karen Millen, Oasis, Warehouse and Coast -- have avoided administration following their purchase by the group’s management.
According to reports Debenhams is likely to acquire Principles, however the deal is being held up by lack of finance and complications over the concessions running inside the stores.
Another retail brand facing the prospect of administration is sports fashion chain JJB. The retailer's lenders want the company to find a buyer for its gym chain before its £75m loan deal expires on March 16.
Principles
Zavvi to sell knickers and perfume as part of online relaunch
LONDON - Zavvi, the home entertainment chain formerly known as Virgin Megastore, will sell lingerie and other lifestyle products following the brand's purchase by online retailer The Hut.