Dear all,
It is with the deepest regret that I have to inform you all, that with effect from 9.30am this morning (Dec 24th), we entered administration in the UK.
Guernsey is going through a process today.
As you aware zavvi Ireland has already been run as a stand-alone legal entity, and with enough funds to continue to trade has not entered any formal insolvency proceedings. We continue to manage and monitor the position.
Since EUK went in to administration and, indeed before, the impact on our business has been immense. Minimal deliveries, no returns and worse terms are just some of the areas impacted. Added to this are the dire trading conditions on the high street encountered for several weeks. This has all added up to significant lost sales and margin that quite simply the business could ill afford.
Our advisors, Steve and I have done all that is possible to keep the business trading.
As you are aware we have had to deal direct with suppliers since 27/11/08 effectively for cash. Clearly this situation could not continue and we could not secure the payment terms from suppliers or financial backing we require to keep our business trading.
Unfortunately, Steve and I, as directors have responsibilities to our creditors that we cannot deliver going forward hence the decision to enter administration.
Personally, Steve and I would like to thank you all for your commitment and support since the launch of our business.
During the next few days it’s imperative we remain professional. I know it’s terrible news and you’ll be in shock today but we must try to trade the business going forward. I ask you all to support EY, Steve and myself in doing just that.
Do not hesitate to contact your Line Manager or Ernst & Young (based Head Office) at any time.
Kindest regards
Simon & Steve
Posts
4 comments:
Not a great time to become a participant in your blog. Albeit predictable your news is still sad. Posting the missive from Simon and Steve without comment is a nice narrative touch - a sure sign that the glass won't ever be emptied.
Bollocks. Sorry about that. What can you say, better than limping on for another month waiting for an inevitable fall. Move on with something new for the new year. Weirdly, the word verification code for this post was 'barph'
Can't say we didn't see it coming but even so... gutted. And on Christmas Eve too.. how seasonal.
Horrible news to supplement the flood of similar coming out of the UK and beyond, thoughts are with you and yours. Every missive these days seems to contain something challenging; here's to better news for all in the new year *raises glass*
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