United we stand: Zavvi gift vouchers/cards

milliemonster

Whilst I agree that it is awful a lot of people have lost money on these vouchers, what you have to remember at the end of the day is this comany have gone into administration and will shortly go bankrupt, they don't have the money to honour those vouchers anymore, you can't compare it to Woolworths, completely different company with different debts etc, the administrators have had to make tough decisions to try to gain some control of the company

How would you all feel if you had personal debts, ran into trouble and couldn't pay and was facing bankruptcy yourselves, would you still expect the creditors to get their full payments back from you? even though you had no means of repaying?, no, you would want to be protected by the law, and that is exactly what is happening here.

All of Zavvi's creditors will be feeling the same as you, but many of those may be small businesses themselves who are probably owed thousands by Zavvi and see no realistic chance of getting that money back thus potentially looking at bankruptcy themselves meaning more job losses etc, I personally think these are more important creditors that the Adminsitrators should be trying to repay than a member of the public with an unhonoured £10 gift voucher

northerngeezer

milliemonster wrote: »

I personally think these are more important creditors that the Adminsitrators should be trying to repay than a member of the public with an unhonoured £10 gift voucher

Or in my case... over £300

milliemonster

northerngeezer wrote: »

Or in my case... over £300

thats still potentially a great deal less than some of the small businesses that will be affected and crippled by this, but then I guess it seems most people are only out for themselves these days

dawny10

milliemonster wrote: »

you can't compare it to Woolworths, completely different company with different debts etc, the administrators have had to make tough decisions to try to gain some control of the company

I don't see why they can't be compared - two companies going into administration, continuing to trade for a time in the hope that a buyer can be found.

Deloitte, as administrators of Woolworths, decided to honour the vouchers - obviously it would have made more money for the creditors if they hadn't. So it appears that they showed some discretion.

sinw

or even less than a space shuttle ride to the moon - er

Gracie_Diver

interesting pont on other creditors from many, but as i understnad it the key creditor is in fact Woolworths who's EUK business was Zavvi's major supplier. This makes Woolies decison to pay out on vouchers versus Zavvis even more incomprehensible

Silicon

dawny10 wrote: »

I don't see why they can't be compared - two companies going into administration, continuing to trade for a time in the hope that a buyer can be found.

Deloitte, as administrators of Woolworths, decided to honour the vouchers - obviously it would have made more money for the creditors if they hadn't. So it appears that they showed some discretion.

I think there are 2 main differences between the approach of Deloitte & Woolies and E&Y with Zavvi.

The number of Woolworths vouchers in circulation is miniscule compared to that of Zavvi. Fewer vouchers is less of a problem. It means the creditors will eventually receive less money but that's covered by the second part.

Deloitte were hoping to offload Woolies, or at least part of it, to various suitors (Theo Paphitis and others were mentioned at the time). Having enormous negative goodwill and publicity generated by refusing vouchers would have damaged the sale of the business, thus reducing the final payment to creditors.

Zavvi is not going to exist at all after this and E&Y know this. There is not enough of a strong brand to make it worthwhile which reduces the value of the company. Look at the general disappointment that Woolies has gone compared to that of Zavvi.

Both sets of administrators are doing the same thing: trying to maximise the returns to creditors, they're just doing it in different ways.

dawny10

I had wondered if it was due to the value of vouchers out there, as you say Zavvis will be much higher.

However, Woolies still continued to accept vouchers after they realised a buyer would not be found and the business would be wound up, so goodwill would not have been a factor at that point.

jayok

withabix wrote: »

Hello, I'm from Britain, is that Zavvi Ireland?

To be sure, to be sure, this iz Zavvi Oirlaaand. How can I help you, to be sure?

Can I spend my British Zavvi Giftcards in your shops in Oirlaaaand?

Oh yes, of course, to be sure, of course you can spend vouchers in our stores, even though we won't be able to get any money for them, to be sure...

In faaaact, maybe we should just let everyone have everything for free, to be sure?


:rolleyes:

This must have done it

Zavvi in Ireland in Liquidation

bashmore75

I have been adding it in to a couple of other forums dealing with this issue. I have contacted watchdog about the problem but I am going to contact them again and point out the website. The whole point is to get the point accross how much we have been ripped off. Any other forums / contacts let me know and I will push the idea to them.

Houseimp54 wrote: »

Great idea bashmore75 - I would thank you officially via the website - if only I knew how!

It would be good if your link could be publicised on other discussion boards (outside of MSE) in order to reach a wider audience as we really do need to know the scale of the problem.

Does anyone have any press contacts to put bashmore75's idea out in the public domain.

Thanks also to Gracie Diver - quite right about E&Y - that they wouldn't welcome negative publicity. I thought this was a moneysaving website - so can't understand the other comments that we should just accept this situation and let the big boys get away with it!