EUK calls in Zavvi debt
Ernst & Young appointed to handle emergency restructuring and to potentially step in as Zavvi's administrator
The administrator of EUK, the biggest creditor to the high street retailer Zavvi, has called in an emergency restructuring team from Ernst & Young, following the collapse of the Woolworths retail chain.
Ernst & Young were appointed to handle Zavvi's debt repayments amounting to GBP 106 million to EUK, following the failure to find a buyer for the distributor and the impending closure of the business.
According to The Times, Zavvi's management team has approved the appointment of Ernst & Young. However, it is understood that Ernst & Young is also prepared to step in as administrator of Zavvi, should the retailer be unable to repay its debt.
Since EUK went into administration Zavvi has suffered through numerous supply issues, culminating in the suspension of trading on its website.