Deloitte has been unable to find a buyer thus far, so has announced EUK will continue to operate with a reduced workforce of 375 employees, while continues to realise value from the assets of the business. As a result, 700 employees have today been made redundant.
The Administrators are working closely with Job Centre Plus to provide support and advice to employees who have been made redundant, and the Insolvency Service’s Redundancy Payments Service has put together a team to quickly approve claims for employee entitlements.
Dan Butters, Joint Administrator and reorganisation services partner at Deloitte, said: “Regrettably, despite our continued efforts, we have been unable to identify a suitable buyer for the business. 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.
“Unfortunately, it has been necessary to make 700 redundancies at the company’s head office and distribution centres in Middlesex. We will retain a core team of 375 employees.”
The Joint Administrators confirmed that Bertrams Books, a fully owned subsidiary of EUK, and 2Entertain, a joint venture between EUK and BBC Worldwide, will continue to trade as usual.
Entertainment UK and Woolworths Plc were placed into administration on 27 November 2008. Dan Butters, Nick Dargan and Neville Kahn of Deloitte, the business advisory firm, were appointed as Joint Administrators.
Meanwhile, entertainment retailer Zavvi has refuted claims that it will be forced into administration by Deloitte, whilst also offering its condolensces to those who lost jobs at EUK.