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Troubled entertainments retailer Zavvi has gone ahead with its Boxing Day sale, despite entering administration earlier this week.

The music, computer games and DVD store, which was formerly Virgin Megastores, announced on Christmas Eve that it would be calling in solicitors firm Ernst & Young to look over its accounts in a bid to maintain trading.

A total of more than 3,000 permanent and temporary jobs could be lost if the company is forced into bankruptcy.

However, the firm's 125 stores all remained open today as sales began in earnest.

"With dire trading conditions on the high street, the Zavvi group has seen a material fall in sales and the directors have now been forced to place parts of the group into administration," said joint administrator Tom Jack.

On Wednesday, two other high street names - Officers Club and Whittard of Chelsea - both managed to leave administration with new buyers and jobs protected.

However, Woolworths was not saved although there are rumours of early negotiations for the brand to be brought back.

Zavvi has been particularly affected by the collapse of Woolworths and its distribution arm EUK, which supplied merchandise such as CDs and DVDs to Zavvi.

The music retailer reportedly owed EUK £106 million, which was called in by creditors looking to salvage the Woolworths umbrella of companies.

"Since EUK went into administration, and perhaps before, the impact of problems at EUK on the Zavvi group has been significant," Mr Jack added.

"Minimal deliveries, no returns and worse trading terms are just some of the areas impacted."

The founders of Zavvi, Simon Douglas and Steve Peckham, added in a statement earlier this week: "We would like to thank all of our employees for their commitment and support since the launch of Zavvi.

"We have done all that is possible to keep the business trading, but the problems encountered with EUK, and particularly its recent failure, has been too much for the business to cope with."