Defunct retailer Zavvi is to close a further 17 stores, leading to the redundancy of 242 employees.

Joint administrator Ernst & Young will continue to trade the remaining 31 stores.

Administrator Tom Jack said: “We will continue to trade the remaining 31 UK stores and remain hopeful that a sale of some or all of these stores can be achieved. We are in detailed discussions with two interested parties and it is our intention to continue to trade all remaining UK stores with a view to their sale as a going concern.

“We are extremely grateful to the staff and management at all stores and the head office for their fantastic support throughout this difficult time. We would like to thank Job Centre Plus and The Redundancy Payments Office for their continued support in this matter.”

Zavvi fell into administration on Christmas Eve after suffering supply problems following the collapse of Woolworths and Zavvi’s only supplier EUK.