Refund probems for Zavvi gift vouchers
People who have yet to spend their Zavvi gift vouchers will have to apply to the troubled music retailer’s administrators if they want to get their money back.
Zavvi, which was formed after the management buyout of the Virgin Megastore from the Virgin Group in September 2007, was placed into administration on Christmas Eve. Although a buyer is still being sought and it is “business as usual” across its 125 stores, the retailer is no longer taking online orders and has blocked redeemptions of vouchers bought after the 27 November 2008.
A statement from Zavvi reads: “It is hoped that all customers who have purchased Zavvi gift cards or gift vouchers from Zavvi stores from 27 November 2008 will receive a full refund in respect of these amounts.”
People with unused gift vouchers are advised to write to the joint administrators of Zavvi, Ernst & Young (address below). You should quote the number of your gift voucher, as well as enclosing the original voucher. You should also provide your full name and address for return correspondence.
c/o The Joint Administrators zavvi Group
Ernst & Young LLP
100 Barbirolli Square
Zavvi got into difficulty at the end of November after the collapse of its main supplier, Entertainment UK, which was owned by Woolworths. It employs over 3,400 staff.
Tom Jack, joint administrator of Zavvi Group, said the collapse of Entertainment UK meant the music and DVD retailer had struggled to source stock. This, alongside a fall in revenues due to less consumer spending, caused “significant cash flow pressure” and meant Zavi was unable to pay its debts.