United we stand: Zavvi gift vouchers/cards

sapphire6

Oh and while we are on the subject of creditors owed money by Zavvi, aren't we forgetting something.
Virgin had backed Zavvi up to the tune of 100 million, but the suppliers (ie Woolwoth) agreed to accept £40 million. So that's leaves Virgin laughing with still 60 million in the bank.
Why is that money not being picked up by the administrators and used to clear the debts of all us poor customers who put faith in the company in the first place.
If you ask me Ernst & Young are digging a deep hole for themselves.
Wonder who administrates an Administrator when they go out of business?

zenseeker

sapphire6 wrote: »

Oh and while we are on the subject of creditors owed money by Zavvi, aren't we forgetting something.
Virgin had backed Zavvi up to the tune of 100 million, but the suppliers (ie Woolwoth) agreed to accept £40 million. So that's leaves Virgin laughing with still 60 million in the bank.
Why is that money not being picked up by the administrators and used to clear the debts of all us poor customers who put faith in the company in the first place.

Because Virgin have nothing to do with it, why should they pay? Zavvi bought out Virgin Megastores, it is no longer the responsibility of Richard Branson.

magyar

sapphire6 wrote: »

Virgin had backed Zavvi up to the tune of 100 million, but the suppliers (ie Woolwoth) agreed to accept £40 million. So that's leaves Virgin laughing with still 60 million in the bank.
Why is that money not being picked up by the administrators and used to clear the debts of all us poor customers who put faith in the company in the first place.

But that money is Virgin's, not Zavvi's. It's nothing to do with them.

sapphire6

magyar wrote: »

But that money is Virgin's, not Zavvi's. It's nothing to do with them.

Aren't you missing the point?
Yes the money was Virgin's, but in the same way it was an 'insurance policy' to back Zavvi for the cost of the stock they had.
If Woolworth had insisted on having the 100 million they'd have to have paid.
So they are doing pretty well having only had to fork out 40 million.
Surely the remaining 60 million is well over the amount needed to clear the cost of all the gift vouchers.
If we can't use them to buy stuff, why let others have goodswe have effectively paid for at reduced prices while we get nothing unless we pay again.

zenseeker

sapphire6 wrote: »

Aren't you missing the point?
Yes the money was Virgin's, but in the same way it was an 'insurance policy' to back Zavvi for the cost of the stock they had.

YOU seem to be missing the point, Virgin have nothing to do with Zavvi....they sold the stores to Zavvi and moved on, it was Zavvi who mis-managed and screwed up...so there is no reason why Virgin should lose out.

magyar

sapphire6 wrote: »

Aren't you missing the point?
Yes the money was Virgin's, but in the same way it was an 'insurance policy' to back Zavvi for the cost of the stock they had.
If Woolworth had insisted on having the 100 million they'd have to have paid.

As zenseeker says above, this is nothing really to do with Virgin, which is a separate company. Why should they pay for another company's mistakes? They guaranteed the Woolworth's transaction, not the sale of gift certificates.

You really are barking up the wrong tree here.

Ellie2758

How do you KNOW when your voucher was purchased if it was a gift? I sent off my son's £10 voucher after christmas (it was a gift) - there is no date on it. It is a credit card type thing.

zenseeker

Ellie2758 wrote: »

How do you KNOW when your voucher was purchased if it was a gift? I sent off my son's £10 voucher after christmas (it was a gift) - there is no date on it. It is a credit card type thing.

You ask the person who bought it :rolleyes:

ThinkingOfLinking

They can also check themselves; they'll have it all registered on a central computer, when it was bought, how much for, etc.

ThinkingOfLinking

Just found this link: Apparently, Zavvi's gift voucher/card fiasco was discussed on Watchdog last night. I am about to watch it myself so cannot comment on what was said yet. HTH!! Watch it below at BBC iPlayer.

http://www.bbc.co.uk/iplayer/episode/b00gq4k5/b00gq4ft/Watchdog_12_01_2009/