Voucher Introduction
Until 4 December 2008, Zavvi Retail Limited (in Creditors’ Voluntary Liquidation)(‘the Company’) sold gift vouchers which customers could use to buy goods from Zavvi stores for up to two years after the date on which the voucher was purchased.
When the Company’s directors became aware of the insolvency of Entertainment UK Limited, the main supplier to the Zavvi Group on 27 November 2008, they sought to protect customer interests by paying funds received from voucher sales into a trust fund for the specific benefit of those who had purchased vouchers from 27 November 2008 onwards.
Vouchers purchased on or after 27 November 2008 and submitted to the Joint Liquidators by 24 December 2010 are trust fund claims.
Following independent legal advice and Court direction valid trust fund claims submitted by 24 December 2010 will be reimbursed in full. More detail on the distribution process can be found here.
Due to the two year voucher validity period, claims relating to vouchers purchased after 27 November 2008 which were not submitted by 24 December 2010 no longer qualify for a full refund. Such creditors do, however, still have an unsecured claim against the Company. Please see below for further information on unsecured claims.
Claims in relation to vouchers purchased prior to 27 November 2008, or vouchers purchased after 27 November 2008 but not submitted within two years of purchase, represent unsecured claims in the Liquidation.
Such creditors rank equally alongside trade creditors, landlords and other unsecured creditors, and are entitled to participate in any subsequent distribution of the Company’s surplus assets.
Following the first interim distribution in June 2011, in January 2012 the Joint Liquidators completed the process of making a second interim distribution of the Company’s surplus assets to unsecured creditors. We anticipate that a third and final distribution will be made to unsecured creditors following the resolution of a number of outstanding matters, however, we are not yet able to confirm the timing of any subsequent distribution. We currently estimate that the total return to unsecured creditors (including the first and second distributions) will be in the region of 25 pence in the pound.
For more information on the interim distributions to unsecured creditors please click here.