E&Y earns 3.2m while many Zavvi creditors miss out
ERNST & Young (E&Y) has made £3.2m in fees after being appointed as joint administrators to Zavvi after the business collapsed last December, whilst unsecured creditors are set to receive only between 5-10p in the pound.
Unsecured creditors, which include employees , trade creditors and voucher holders, are set to receive 5-10p for every pound they are owed by the collapsed music and entertainment retailer.
The unsecured claims from employees in respect of pay in lieu of notice and redundancy is estimated at £4.1m, while claims for voucher holders total £3.5m, trade creditors are owed £4.3m and other unsecured claims are at £7.6m.
At the time of the retailer’s collapse there were 510,000 unredeemed vouchers worth a total of £4.1m, but documents filed at Companies House show the majority have failed to ask for any compensation, due to the measly payout.
Only 20,000 people had submittted claims by the middle of January for vouchers asking for compensation for a total of £300,000.
E&Y said last night that over three months the firm had helped secure more than 600 jobs and it allowed secured debt of up to £80m to be cleared in full.
It continued “to assign or surrender leases to minimise landlord claims which could otherwise amount to approximately £200 m”.
Zavvi, formerly Virgin Megastores, was badly affected by the demise of Woolworths and its distribution arm EUK.