Zavvi, formerly Virgin Megastores, has been hit by the collapse of Woolworths as the online store relied solely on Woolworths' distribution arm Entertainment UK (EUK) to supply its products.
Administrators Deloitte are continuing to look for a buyer for the Woolworths chain and its distribution businesses and has reported ‘substantial interest’ in the firm.
Zavvi was formed in 2007 when Virgin sold its music stores in a management buy-out. The retailers 125 stores throughout the UK will continue trading.
The company said on its website: “Due to the uncertainty of supplies from Entertainment UK, all outstanding orders for DVDs, music and games placed up to December will be cancelled, since we are unable to fully guarantee delivery prior to Christmas.
"We are doing all we can to resolve the situation as quickly as possible and apologise for any inconvenience.”