Adams and Zavvi in Administration in UK

Absolam

robo wrote: »

€30 is €30 no matter what. Someone spent that on the vouchers with the understanding that you could redeem them for goods of that value.

It is disgraceful that they can't take them. It would make you think about buying vouchers in the future!

I'm guessing that once a company is in receivership, the gift voucher is effectively a promisory note, making the holder one of a large number of company creditors, none of whom can be paid until the assets are realised and the company is wound up? Makes sense really.

faceman

UK and Irish law differs slightly when it comes to liquidations. We dont have administration in Ireland. we have liquidation, receivership or examinership.

If a company goes into receivership or examinership, there is a possibility they will come out the other side.

vincenzo1975

zavvi ireland into administration - bad for the consumer, terrible for the workers. Hopefully it will give enough marketshare back to other music/entertainment shops to kep them going.

How did golden disks survive and zavvi go under??

Looks like we might start seeing unrented empty stores in the big shopping centers soon.

dudara

vincenzo1975 wrote: »

How did golden disks survive and zavvi go under??

Woolworths were a major wholesaler of CDs to Zavvi and when they closed, Zavvi couldn't get stock. I don't know who Golden Discs suppliers are, but Golden Discs operate on a much smaller footprint basis.

vincenzo1975 wrote: »

Looks like we might start seeing unrented empty stores in the big shopping centers soon.

I think HMV will seek to take over some of the Zavvi stores - probably the ones in big centres like Dundrum where they do not have an existing presence.

fluke

They won't refund the vouchers in store, I bought one for a relative as a Christmas present, I bought it in early December, (when they're accountants knew they were going into liquidation). Piss poor consumer attitude...


If you look on their site you're asked to send on your voucher in order to receive correspondence...what the hell does that mean? That doesn't actually mean I will get a refund does it???

Lousy bared faced robbery!!!! :mad:

Captain Slow IRL

I went into zavvi sligo yesterday, got a few cheap dvd's. It says on the bottom of the receipt, in bold letters, "in provisional liquidation"

I've never had a problem with customer service in zavvi, staff were always polite and helpful.

One thing I will criticise is their pricing of console games and accessories - always a few euro higher than any other shops around.

Julesie

vincenzo1975 wrote: »

How did golden disks survive and zavvi go under??

As Dudara has mentioned, Zavvi's woes are caused by the collapse of Woolworths, in particular its distribution wing EUK.

Zavvi was affected in two ways:

1. They could not get stock of their best selling items - impacting sales but not the reason for their downfall
2. They had to repay a £106m debt to EUK - This was unexpected, Zavvi did not have the cash and ultimately they collapsed too.

This really has nothing to do with the long term viability of Bricks and Mortar stores like Zavvi or Golden Discs. Zavvi have gone under due to a specific cash flow issue caused by another collapse (Woolworths). This is the sort of ripple effect that has everyone so paranoid because no one really knows which seemingly healthy company may be next.

With regards to the Gift Vouchers, while it is undoubtedly a major pain in the ass that holders now join the long list of other unsecured creditors there is really no reason why they shouldn't. I'm pretty sure every supplier that is owed money from Zavvi is equally precious about their money.

son.of.jimi

I knew there was something wrong when Branson pulled out of the business he started out in and made a worldwide sucess! I used to work for Virgin a few years ago and I could see the problems building up back then.

I feel for the people who will be out of work from this as some of them are the most helpful people you would ever want to encounter when your out shopping / browsing.

Plus it also sucks that i've 100eur in vouchers that are now useless!!!

vincenzo1975

Cabaal wrote: »

If you even bothered to read about this you;d know Zavvi in Ireland is unaffected by whats happening in the UK

Hmmmmmm!!!!!:rolleyes:

faceman

Captain Slow IRL wrote: »

I went into zavvi sligo yesterday, got a few cheap dvd's. It says on the bottom of the receipt, in bold letters, "in provisional liquidation"

I've never had a problem with customer service in zavvi, staff were always polite and helpful.

One thing I will criticise is their pricing of console games and accessories - always a few euro higher than any other shops around.

Provisional Liquidation? Thats a new one!

Paulw

An interesting article today in the Irish Independent.

Music chain refuses to redeem vouchers in store.

stevek21

fluke wrote: »

They won't refund the vouchers in store, I bought one for a relative as a Christmas present, I bought it in early December, (when they're accountants knew they were going into liquidation). Piss poor consumer attitude...


If you look on their site you're asked to send on your voucher in order to receive correspondence...what the hell does that mean? That doesn't actually mean I will get a refund does it???

Lousy bared faced robbery!!!! :mad:

If you actually looked on the website, you would have seen that all vouchers bought after nov 27th will be given a full refund.
The only reason that this is even possible is that when EUK (Zavvi's main supplier) went into administration in the UK, Zavvi's management set up a seperate bank account to protect the money spent on vouchers from that point on. It was only due to difficulties following on from that date that unfortunatley now means that they cannot accept the vouchers instore.
No other business has yet even tried to make this kind of move to protect its customers in case of the worst so I think Zavvi should at least be given credit for trying to do what it could before the administraters/liquidators took the decision out of their hands.

stevek21

Just to add...

http://www.consumerconnect.ie/eng/News_+_Research/Press%20Releases/Zavvi_gift_vouchers.html