Virgin Mobile loses two biggest distribution channels

January 15, 2009 at 17:35 Leave a comment

Virgin Mobile has lost its two biggest distribution channels following the collapse of retailers Zavvi and Woolworths. Zavvi went into administration on 24 December, threatening at least 3,400 jobs. Five of the 22 stores closed by Zavvi’s administrators, Ernst and Young, last week – in Torquay, Liverpool, Gillingham, Chatham and High Wickham – contained Virgin Mobile concessions.

The company currently has just 20 Virgin Media standalone shops and 83 branded concessions in Zavvi stores. A Virgin Mobile spokesman said the 11 Virgin staff that worked in the five stores have been redeployed within the Virgin Media group. The remaining 92 stores will stay open for the time being, with a 50% off sale that began last Friday (9 January). It is not known what will happen to the 270 Virgin Mobile staff that still remain. Zavvi, formerly Virgin Megastore, was formed after a management buyout of the Virgin Group division in 2007. It is the UK’s largest independent entertainment retailer.

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Entry filed under: Mobile, MVNO, Telecom, Virgin Mobile, Wireless, Woolworths, Zavvi. Tags: , , , , , .

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