Zavvi falls victim to Woolworths collapse
Administrators of EUK, the biggest creditor of Zavvi, have been forced to call in emergency resturcturing team from E&Y
Creditors of Zavvi
have been forced to bring in an emergency restructuring team from Ernst &
Young (E&Y) for the former Virgin Megastore retailer, with its management
team’s approval.
Deloitte, the administrator of
EUK, Woolworths’
distributing arm and Zavvi’s biggest creditor, has recruited E&Y for the
troubled CD and DVD retailer as the fallout from Woolworths’ collapse escalates,
The Times reports.
Zavvi has been unable to bring in stock since EUK went into administration
last week, hampering its deliveries in the wake of the Woolworths collapse and
forcing it to alert customers it could no longer take online orders.
E&Y is reportedly standing by to take over as administrator if Zavvi
fails to repay its £106m debt to EUK, threatening the jobs of 2,500 employees.
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