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Supply from Entertainment UK into supermarkets has ground to a halt as administrators Deloitte continued a review of the business today (27th November) and met with senior management at EUK to discuss the distributor's future. The administrators were called in yesterday (26th November) by EUK's parent Woolworth's.
Deloitte said it intended to keep the high street chain Woolworths trading as a going concern, but it is unclear when Entertainment UK will be able to recommence supply to Tesco, Sainsbury's, Zavvi and Morrisons with titles. Deloitte would not comment about its plans to The Bookseller, with EUK's media team referring all inquiries to the administrator.
Publishers said intense activity was underway to find a solution urgently to the problem of keeping supermarkets supplied with books in the crucial next few weeks. One publisher described it as "a nuclear strike on the conglomerates, which have engineered their businesses to get stuff into the supermarkets. If they can't get into Tesco and Sainsbury, it is a giant problem".
Wholesaler Bertrams, which is owned by Woolies but is not in administration itself, is understood to have spoken to several firms and reassured them that it is "business as usual”. However, retailers spoken to by The Bookseller said they had not been contacted by Entertainment UK.
One publisher predicted that a "partial replacement" would be put in place to try to salvage supermarket supply pre-Christmas. But the publisher added: "You can't replicate EUK's systems in delivery and merchandising." A sales director from an independent publisher said she had "a commitment" from one retailer "that we will have a plan in place tomorrow".
Several publishers said they were due to receive payments from EUK tomorrow (Friday 28th November), but many now doubted that these would arrive. "There is a high chance we won't get paid," said one, who wished to remain anonymous. "I hope I am wrong, but this doesn't bode well for anyone."