Deloitte has been appointed administrators to Entertainment UK, the wholesale division of Woolworths Group, alongside the parent company.
E.UK is a leading distributor of entertainment products in the UK, distributing to a number of retailers, including Zavvi and several supermarkets.
Despite reports to the contrary, the administrators have said E.UK will continue to operate as normal until after Christmas, as will Woolworths, and that several companies are interested in purchasing both businesses.
The retail arm of the company operates more than 800 high street stores and four distribution centres, employing 25,000 staff.
Neville Kahn, reorganisation services partner at Deloitte, said: “Woolworths has suffered a number of cash flow problems. Strenuous efforts over recent weeks to keep these companies going have unfortunately failed and the businesses are now looking to be rescued under the administration process.
“The companies were placed into administration this morning [27 November] and will continue to trade. Stores will remain open past Christmas and employees in stores will be paid.
“We have mobilised a large Deloitte team to stabilise the business and have hired Hilco as our agent to assist in the management of the retail business. We appreciate the co-operation and support from the management and staff at both companies. We are glad that arrangements are in place to ensure that all wages will be paid in full this week.”
Dan Butters, reorganisation services partner at Deloitte, added: “We will be looking for a suitable buyer for all parts of the business. In the last 24 hours we have received expressions of interest from a number of parties for both the retail and wholesale businesses. We are working hard to ensure that any sale of the business, in whole or part, will preserve jobs.”
