youthmoney

Sorry—no chance. That’s the response to anyone trying to pay for DVDs or CDs in Zavvi with a gift voucher or card.

Though the high street record store went bust on Christmas Eve, it is still trading. But those holding vouchers are creditors, not customers.

That leaves young people who received vouchers as gifts holding worthless pieces of plastic.

Three junior leaders at a youth club on the Saltersgill estate in Middlesbrough were given vouchers as a thank-you for their work during the year. Two successfully exchanged theirs before Christmas. The third tried earlier this week and got the brush off, as the local Evening Gazette reported.

The lesson? Most likely, if you have a voucher, get it spent fast. Holding onto it is a high risk strategy in a world of disappearing retail outlets.

The other financial lesson is in following what happens when a company goes bust.

Zavvi is advising holders of gift cards or gift vouchers to write to the administrators. Those with vouchers dated after 27th November 2008 can expect a  full refund. That’s because of a trust that the directors set up when they realised the store was in trouble. Others will have to take their place in the queue of unsecured creditors. They can hope for a lower payment, if any, once assets have been sold and legal processes completed.

All voucher holders are being requested to send their vouchers, quoting the numbers and giving their full name and address, to the administrators:

Zavvi vouchers
c/o The Joint Administrators
Ernst & Young LLP
100 Barbirolli Square
Manchester
M2 3EY

Details on the Zavvi website – click on important customer message, top right.