The unsecured creditors owed £20 million ($26 million) by the collapse of British retail chain Zavvi will get between 5 and 10 pence to the pound, according to company administrators Ernst & Young.
The Daily Telegraph claims the forecast £1 million to £2 million payout from the music and video chain that fell into administration late last year is less than the £3.2 million E&Y has earned for winding the company up.
Documents filed at Companies House show unsecured claims from employees in respect of pay in lieu of notice and redundancy are estimated at £4.1 million, voucher holders have claims totaling £3.5million, trade creditors are owed £4.3 million and other unsecured claims amount to £7.6 million.
When Zavvi went under, there were 510,000 unredeemed gift vouchers worth £4.1 million, although so far many people don’t look to have bothered to make a claim because of the likelihood of a low return.
As of the middle of July, just 20,000 claimants owning vouchers worth £300,000 had asked for compensation.