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| Version 1 | Version 2 |
|---|---|
| Woolworths arm slashes 700 jobs | Woolworths arm slashes 700 jobs |
| (about 2 hours later) | |
| Administrators at Entertainment UK, Woolworths' distribution arm, have made 700 staff redundant after failing to find a buyer for the business. | Administrators at Entertainment UK, Woolworths' distribution arm, have made 700 staff redundant after failing to find a buyer for the business. |
| The job cuts will affect staff at the "company's head office and distribution centres in Middlesex", administrators Deloitte said in a statement. | The job cuts will affect staff at the "company's head office and distribution centres in Middlesex", administrators Deloitte said in a statement. |
| They said moves to sell the business as a going concern were being scaled down. | They said moves to sell the business as a going concern were being scaled down. |
| Woolworths, along with Entertainment UK (EUK) and other subsidiaries, went into administration on 27 November. | Woolworths, along with Entertainment UK (EUK) and other subsidiaries, went into administration on 27 November. |
| Entertainment UK will continue its wholesale distribution operations with a reduced workforce of 375 employees. | Entertainment UK will continue its wholesale distribution operations with a reduced workforce of 375 employees. |
| Major distributor | Major distributor |
| The company delivered up to 30% of music CDs in the UK, as well as film and TV DVDs. | The company delivered up to 30% of music CDs in the UK, as well as film and TV DVDs. |
| Regrettably, despite our continued efforts, we have been unable to identify a suitable buyer for the business DeloitteWoolworths' administrator | |
| When it stopped deliveries to stores, record labels and shops were forced to take action to ensure new albums by Take That and Britney Spears reached their shelves. | When it stopped deliveries to stores, record labels and shops were forced to take action to ensure new albums by Take That and Britney Spears reached their shelves. |
| Its customers included retailers Zavvi, Asda, Sainsbury's, Morrisons and WH Smith, as well as supplying Woolworths. | Its customers included retailers Zavvi, Asda, Sainsbury's, Morrisons and WH Smith, as well as supplying Woolworths. |
| "Whilst we will continue to consider offers for the sale of the business as a going concern, we will now focus on realising value from the company's assets," said Dan Butters, joint administrator partner at Deloitte. | "Whilst we will continue to consider offers for the sale of the business as a going concern, we will now focus on realising value from the company's assets," said Dan Butters, joint administrator partner at Deloitte. |
| The administrators added that another Woolworths subsidiary, Bertrams Books, would continue to trade as usual. | The administrators added that another Woolworths subsidiary, Bertrams Books, would continue to trade as usual. |
| Bertram Books is a a fully owned subsidiary of Entertainment UK, and 2Entertain, a joint venture between EUK and BBC Worldwide. | Bertram Books is a a fully owned subsidiary of Entertainment UK, and 2Entertain, a joint venture between EUK and BBC Worldwide. |
| Negotiations | |
| The administrators are also continuing talks over the sale of Woolworths' 815 stores across the UK. | |
| It is thought that Sainsbury's, Asda, Tesco, the Co-op and discount chain Poundland are still interested in picking up some of the retailer's prime sites. | |
| On Thursday, Deloitte said Woolworths experienced the single biggest trading day in its history after it started a closure sale. | |
| Some of Woolworths' shops are expected to close by the end of the year. |