Zavvi call in E&Y as it falls victim to Woolworths collapse

Creditors of Zavvi have been forced to bring in an emergency restructuring team from Ernst & Young (E&Y) for the former Virgin Megastore retailer, with its management team’s approval.

Deloitte, the administrator of EUK, Woolworths’ distributing arm and Zavvi’s biggest creditor, has recruited E&Y for the troubled CD and DVD retailer as the fallout from Woolworths’ collapse escalates, The Times reports.

Zavvi has been unable to bring in stock since EUK went into administration last week, hampering its deliveries in the wake of the Woolworths collapse and forcing it to alert customers it could no longer take online orders.

E&Y is reportedly standing by to take over as administrator if Zavvi fails to repay its £106m debt to EUK, threatening the jobs of 2,500 employees.