Notice to Customers (Republic of Ireland) 30.12.2008
What has happened?
zavvi Retail (Ireland) Limited ("the Company")
On 30 December 2008 David Hughes of Ernst & Young was appointed as Provisional Liquidator of the Comapny. On 27 November 2008 Entertainment UK Limited (EUK), the Companies main supplier, went into Administration. Since this time, the Comapny has been unable to source stock in the usual way and has been forced to enter into new trading arrangements. The Directors understand it is unlikely that EUK will be sold as a going concern and the Company has continued to experience significant difficulty in obtaining stock on favourable credit terms. In addition, the Company has recently experienced a material fall in revenues due to the abrupt downturn in consumer spending. As a result of the above factors the Company began to experience significant cash flow pressure and ultimately became unable to pay its debts as they fell due.
Whilst in Provisional Liquidation, the Liquidators are ultimately responsible for the Company. However, the existing management team will be responsible for the day-to-day running of the Company.
Business as usual
The Company has not ceased to trade and customers will be able to continue shopping at zavvi stores across the UK and Ireland. Unfortunately, the zavvi website will not be taking any online orders and it will not be possible to redeem Gift Vouchers / Gift Cards in store. Arrangements regarding Refunds / Exchanges and Gift Vouchers / Gift Cards will be communicated separately.
David Hughes, Provisional Liquidator
The Association of Chartered Certified Accountants authorises David Hughes to act as an Insolvency Practitioner under section 390(2)(a) of the Insolvency Act 1986.
The affairs, business and property of the Company are being managed by the Provisional Liquidator David Hughes. The Provisional Liquidator acts as agent of the Company only and without personal liability.