British music retailer Zavvi—a.k.a. the chain once known as Virgin Megastore, and now known as “those record shops that are teetering on the edge while in bankruptcy protection”—will close 22 of its stores and lay off 178 employees throughout the chain. The remaining stores will see deep discounts as Ernst & Young tries to ride out the downturn long enough to figure out how to ship Zavvi’s remaining stock over to Dubai. [AP]