E&Y earns 3.2m while many Zavvi creditors miss out

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