Zaavi - are the administrators just a bunch of ***** or what? - HotUKDeals
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Zaavi - are the administrators just a bunch of ***** or what?

disneyfan Avatar
7y, 11m agoPosted 7 years, 11 months ago
Eventually got a day off (bah humbug) and had a look at the 'real' shops (as opposed to online) and saw a note in Zaavi's door saying they wont accept gift vouchers.

WHAT A BUNCH OF *****!!!!

Despite this rant, I dont actually have any zavvi vouchers, I was lucky and my sis gave me some HMV ones instead- not through any clever planning, just luck. But many people will have bought gift cards for loved ones, kids etc, only to find out that the administrators, on XMAS EVE! have put the store into administration and all the vouchers are useless.

This has got to be taking mercenary to a new degree don't you think. There was no hint that zavvi were going to go under (no more so than anyone else that is - Ive unloaded my HMV vouchers already, just in case!) and they let people go on buying vouchers right up to christmas. They must have known what they were doing surely.

I think they have to get the scrooge award for 2008. What a bunch of evil gits.
disneyfan Avatar
7y, 11m agoPosted 7 years, 11 months ago
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#1
I agree its unfair but its not zavvis administrators that are at fault-its uk insolvency law-they are only doing what they must by law.

all voucher holders have to join the list of creditors-any vouchers bought after 27th when they went into administration will be refunded in full by post-any bought before that are almost worthless as these creditors will be at the bottom of the queue and will likely get about 2 pence in the pound if they are lucky.
#2
I think this is just the start.. over the next year you will see this a lot more. Grab the bargains while you can as the wont be around for long. china and india are feeling the pinch big style and the price of oil is falling fast... this is just the beginning...
#3
why blame the administrators.

Zavvi management are solely responsible for putting the company in adminstration.

Tbh what they do might seem unfair but its the way things are..voucher holders are now considered creditors on par with all those other owed money by Zavvi. It would be unfair to have it otherwise because everyone is equally entitled to recieve their money.
#4
barky
I agree its unfair but its not zavvis administrators that are at fault-its uk insolvency law-they are only doing what they must by law.

all voucher holders have to join the list of creditors-any vouchers bought after 27th when they went into administration will be refunded in full by post-any bought before that are almost worthless as these creditors will be at the bottom of the queue and will likely get about 2 pence in the pound if they are lucky.


Yea perhaps its not the administarators but someone has certainly deliberately scre*** people over. Selling vouchers right up to christmas. That can't be an accident, anyone honestly think its not a deliberate act? Someone should be shot. Management perhaps. They have stuffed up the staff as well so why not?
#5
This has got to be taking mercenary to a new degree don't you think. There was no hint that zavvi were going to go under (no more so than anyone else that is - Ive unloaded my HMV vouchers already, just in case!) and they let people go on buying vouchers right up to christmas. They must have known what they were doing surely.


It was in the news that they were crippled by the collapse of Woolworths and Entertainment UK.

http://news.bbc.co.uk/1/hi/business/7761356.stm

It became clear at the start of December that they were going to struggle, and when the debt got called in, they flopped.
#6
At last...
[helper]#7
ive not bought vouchers very much in the past because I dont really like the idea of them but will definitely never buy them again for anything now.
#8
LJM
ive not bought vouchers very much in the past because I dont really like the idea of them but will definitely never buy them again for anything now.



totally agree-wouldnt buy vouchers for any shop now-also am currently trying to buy a sofa but there is no way I am giving any furniture store my money until they deliver.

most of em seem to think its reasonable to ask you to pay a thousand quid or more and promise delivery 8 weeks later-absolutely no chance I am doing that!
#9
I have a few vouchers for zavvi ,when the company gets taken over will i be able to use them or are shall i use them as toilet paper now
#10
Some facts for you, Zavvi stopped selling gift cards on the 4th of december so did not sell up to xmas, get your facts right. On 27th of november euk went into administration, there supplier, on that day they opened a separate trust fund which would not be accessible by the adminstrators, so that is why if you bought a gift card between 27th nov to 4th dec you will get a refund, before that date remeber euk was in business and Zavvi was trading as normal.I think they did all they could to protect customers after EUK went.
You cant spend your gift cards because ernst and young wont let you, not zavvi, they have no say now.
#11
Ok then, 1st thing, I know people who have bouhgt gift cards since the 27th, so... either you need to get your facts right:whistling:, or the shop staff who sold them need to be kicked in the nuts:x. 2nd, this is the first I have seen or heard regarding a 'trust fund'. :? A note in the stores advising customers of this would be a good idea, if it in fact exists. Will be interesting to see if you can find anything in writing about that. Please post it if you do, would be a great help to those with cards.


clublasanta
Some facts for you, Zavvi stopped selling gift cards on the 4th of december so did not sell up to xmas, get your facts right. On 27th of november euk went into administration, there supplier, on that day they opened a separate trust fund which would not be accessible by the adminstrators, so that is why if you bought a gift card between 27th nov to 4th dec you will get a refund, before that date remeber euk was in business and Zavvi was trading as normal.I think they did all they could to protect customers after EUK went.
You cant spend your gift cards because ernst and young wont let you, not zavvi, they have no say now.
#12
Can't see the attraction of exchanging hard earned cash with a piece of paper that may or may not worth anything no matter how pretty they may look, clearly when things go wrong the gift card holder is in the bottom of the pile. Put the cash in the envelope, this way they can walk in any shop and buy anything they want. Very unlikely to be told I am sorry UK has gone to administrations so we won’t be accepting your pounds from today.
[mod]#13
Do you know anything about business formation and general insolvency laws?!?
#14
Zavvi stopped selling gift cards on 4th December because the collapse of Woolworths distribution arm was severely effecting the company as little stock was arriving. The company also started to put money aside into a separate bank account in case this happened. Do you think Zavvi management wanted their brand destroyed by not accepting gift cards, Zavvi is being run by a law firm at the moment and have no say in the gift card matter.

Zavvi has gone under because of the Woolworths collapse, not because of the management. Sales vs. last year were up considerably and growth had been stronger than H.M.V for the year. So please get your facts right.
#15
BBC NEWS
Since Entertainment UK went into administration, Zavvi has had difficulties in sourcing stock and has been forced to enter new trading arrangements.

"This has resulted in considerable working capital difficulties," an Ernst & Young statement said.

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

"Minimal deliveries, no returns and worse trading terms are just some of the areas impacted," said joint administrator Tom Jack.

"In the absence of a buyer for EUK, and 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," he added.

The administrators intend for Zavvi to continue trading with a view to selling all or part of the business.

The group's founding partners Simon Douglas and Steve Peckham said: "We have done all that is possible to keep the business trading, but the problems encountered with EUK, and particularly its recent failure, have been too much for the business to cope with."
#16
Got to agree with you on that one. Have to say when the 'hm gov' gift vouchers dont work any more, there will be more to worry about than gift cards! Last one out switch off the lights!

mas
Can't see the attraction of exchanging hard earned cash with a piece of paper that may or may not worth anything no matter how pretty they may look, clearly when things go wrong the gift card holder is in the bottom of the pile. Put the cash in the envelope, this way they can walk in any shop and buy anything they want. Very unlikely to be told I am sorry UK has gone to administrations so we won’t be accepting your pounds from today.
#17
No. Just about fair play and screwing over the little people. Not as much as Zavvi obviously though!

magicjay1986
Do you know anything about business formation and general insolvency laws?!?
#18
clublasanta;3920154
Some facts for you, Zavvi stopped selling gift cards on the 4th of december so did not sell up to xmas, get your facts right.


disneyfan;3922238
Ok then, 1st thing, I know people who have bouhgt gift cards since the 27th, so... either you need to get your facts right:whistling:


errr... I'm pretty sure clublasanta may have been right, it's just that you didn't read their post fully enough?

They don't mention anything about gift vouchers being stopped from sale on the 27th of November, but the 4th of December, as I have highlighted.
#19
No. Zavvi went under because the management had organised the business badly. Zavvi wasnt a branch of Woolworths. Woolworths may have been the cause for the company going under, but it was, and always is, the managements responsibility to structure a company to withstand external changes. Short sighted management = insolvency.

How many other companies will fall remains to be seen, but woolworths is treating its customers far better than Zavvi. Will be a real shame when they go. Particularly for all the staff who are going to find times hard.

jazybp
Zavvi stopped selling gift cards on 4th December because the collapse of Woolworths distribution arm was severely effecting the company as little stock was arriving. The company also started to put money aside into a separate bank account in case this happened. Do you think Zavvi management wanted their brand destroyed by not accepting gift cards, Zavvi is being run by a law firm at the moment and have no say in the gift card matter.

Zavvi has gone under because of the Woolworths collapse, not because of the management. Sales vs. last year were up considerably and growth had been stronger than H.M.V for the year. So please get your facts right.
#20
disneyfan;3925552
No. Zavvi went under because the management had organised the business badly. Zavvi wasnt a branch of Woolworths. Woolworths may have been the cause for the company going under,


:?

For a national business with a large amount of stores to magically find a large supplier of their stock and then replenish store stock within a few weeks would be rather hard if you ask me.
#21
emasu
errr... I'm pretty sure clublasanta may have been right, it's just that you didn't read their post fully enough?

They don't mention anything about gift vouchers being stopped from sale on the 27th of November, but the 4th of December, as I have highlighted.


So as I said, they sold vouchers knowing they wouldnt honour them, for over a week.. Real nice guys. - Strange you seem so keen to defend them?
#22
emasu
:?

For a national business with a large amount of stores to magically find a large supplier of their stock and then replenish store stock within a few weeks would be rather hard if you ask me.


That was because they were relying on one supplier in the first place. Structure your business to rely on one other business and you are at the mercy of that business, or its failure in this case. - short sighted.
#23
if you bought a gift card between 27th nov onwards, remembering zavvi stores stopped selling them on 4th dec, you need to send them to the address shown on the website, which is too the administrators and you will get a refund, probably a cheque i presume. That was the purpose of the new account, so customers could get a refund if anything happened.So they did sell gift cards for a week, but they put this safeguard into place.
#24
disneyfan;3925582
Real nice guys. - Strange you seem so keen to defend them?


Probs because you started a thread with a rant on a subject you seem to know little about.

Zavvi have said if you purchased gift cards in the week between them finding out about EUk and when they stopped selling them you can get a full refund. What more would you want?

At the time nobody knew for sure whether EUK were actually going under.
[mod]#25
disneyfan
No. Just about fair play and screwing over the little people. Not as much as Zavvi obviously though!


You really dont get it do you. Go and read up on business formation and practice and then come back and try to argue that every business that has ever gone under should honour what the customer wants as opposed to what they are entitled to at law.

I am not saying it is fair but how were Zavvi to know that a buyer wouldnt be found, their stock supplier would not be able to offer more stock etc.

I doubt you were sat in every Zavvi board meeting and I very much doubt that their directors decided that they would screw the customers. If they wanted to do that then why did they stop selling gift vouchers? They could have continued right up to the day that the news was made.
#26
jazybp
Zavvi stopped selling gift cards on 4th December because the collapse of Woolworths distribution arm was severely effecting the company as little stock was arriving. The company also started to put money aside into a separate bank account in case this happened. Do you think Zavvi management wanted their brand destroyed by not accepting gift cards, Zavvi is being run by a law firm at the moment and have no say in the gift card matter.

Zavvi has gone under because of the Woolworths collapse, not because of the management. Sales vs. last year were up considerably and growth had been stronger than H.M.V for the year. So please get your facts right.


I hate people saying get your facts right when they get their 'facts' are wrong..

E&Y are an accountancy firm!
1 Like #27
disneyfan
That was because they were relying on one supplier in the first place. Structure your business to rely on one other business and you are at the mercy of that business, or its failure in this case. - short sighted.


they have more than one supplier!

Its a case of them owning that on supplier 103million and since woolworths demise that debt has been recalled immediately and Zavvi not having the reserves to pay this debt
#28
disneyfan
So as I said, they sold vouchers knowing they wouldnt honour them, for over a week.. Real nice guys. - Strange you seem so keen to defend them?


No, from the 27th (the date of EUK going into administration) until the 4th (when voucher sales were withdrawn), they only sold gift vouchers which they knew could be fully refunded if needs be, because management took the immediate decision to secure the funds taken. Creditors before the 27th were totally out of their control.

There's no reason why you, sat there owed £10, are more important than any other creditor, including those owed £10 million.
#29
allstar2
they have more than one supplier!

Its a case of them owning that on supplier 103million and since woolworths demise that debt has been recalled immediately and Zavvi not having the reserves to pay this debt


Bingo. Which is why most of the recent announcements are occuring. Most businesses incur debts, but when the debt is recalled immediately (instead of say, 60 days payment terms etc), a large number of firms are shafted for cash flows and cease to trade as a result.

You'll find that had loans not been recalled in full immediately, a good proportion of firms in the hands of administrators were actually going concerns.
#30
Zavvi was never going to work...Branson was savvy and got out before the tide did go out...look at the business model...then cast your eyes at HMV...this kind of business model is now **cked , and it is just a matter of time....it`s called progress and retail is detail
#31
Got a Zavvi gift card in the middle of November for my birthday off a friend and was planning to spend them on Christmas Eve when the PS3 controllers went down (I saw the post on the site!)

Was gutted when I went in on the 24th so see they were not accepting them any more but I feel even worse for my friends who bought the card in good faith.

I guess there's nothing I can do - I saw another poster ask that if they got bought out would they then honour the card? Surely they would have to if it was the same company?

I guess the moral of the story is don't buy vouchers anymore in the current climate! And that's coming from someone working in retail :(
#32
mattyarmy
I saw another poster ask that if they got bought out would they then honour the card? Surely they would have to if it was the same company?


Well, if the company, including it's debts are sold, then yes, they would be valid. But, if the brand and some leases are sold but Zavvi UK Ltd is declared bankrupt and fully insolvent, then no.

It all depends on the type of bailout...

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