3400 workers face New Year on the dole.

MORE than 3400 Zavvi workers could lose their jobs after the chain entered administration.

The music, film and games sellers suffered from last month's collapse of Woolworths' Entertainment UK wholesale division.

EUK were the company's main suppliers and their demise left Zavvi unable to take customer orders.

Ernst & Young said all Zavvi's 125 stores would open as normal on Boxing Day for the sales, while efforts to sell the business as a going concern continued.

The former Virgin Megastore chain are the UK's largest independent entertainment retailers.

They have 114 stores in the UK and 11 in Ireland, employing 2363 permanent workers and 1052 temporary.

Sir Richard Branson sold the chain to Zavvi's chief executive Simon Douglas in September 2007, reportedly for pounds 1.

According to reports, Virgin Group could become liable for millions of pounds of debt as it has guaranteed Zavvi's orders with EUK.

They are understood to have underwritten around 60 days of credit for Zavvi, which ends next month.

Tom Jack, Zavvi's joint administrator, said: "We are grateful for the continued support of all employees during this difficult time."

No one at Virgin was available to comment.

Zavvi became the third major retailer in 24 hours to call for help.

Tea and coffee merchant Whittards and menswear retailer The Officers Club both went into administration on Tuesday.

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SOUNDS BAD: Zavvi went into administration