Refund issues for Zavvi vouchers

Zavvi called in the administrators on 24 December

Most customers with gift vouchers and cards for stricken music chain Zavvi will have to apply to the administrator for a refund.

People who received Zavvi vouchers as Christmas gifts discovered they were not being accepted in stores since it went into administration five days ago.

Holders of vouchers bought after 27 November must write to the administrators for a refund.

A buyer is still being sought for the chain which employs 3,400 people.

"Due to the large volumes of gift card vouchers that are currently outstanding it is not possible to discuss individual customer queries in person at this stage," a Zavvi spokesman said.

Sales

Its stores opened as normal on 26 December for its traditional post-Christmas sale, despite the administrators Ernst & Young being called in on 24 December.

But the administrators confirmed that vouchers could not be used during the "clearout" sales with many stores carrying notices outlining the ban.

Some of Zavvi's troubles began earlier this month with the collapse of its main supplier Woolworths' unit Entertainment UK on 27 November.

Customers who bought vouchers before this date are likely to have to apply to the administrators for an unsecured claim. This means they are less likely to receive a full refund than those who bought vouchers or gift cards subsequently.

Zavvi stopped selling the vouchers and cards on 4 December, a spokeswoman for the administrators said.

Anyone applying for a refund should quote their gift card or voucher number, enclosing the originals and include their full name and address in any claim.

Zavvi, which specialises in music, games and DVDs, was formed after a management buyout of the Virgin Megastore division of the Virgin Group in September 2007.