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700 made redundant as eUK winds down
By CMU Editorial | Published on Monday 15 December 2008
Seven hundred people were made redundant by eUK on Friday following the news the CD/DVD distributor was moving into liquidation.
As previously reported, hopes that a buyer would be found for the Woolworths-owned distribution firm faded at the end of last week after one interested party withdrew from negotiations.
Administrators who are dealing with the collapse of both eUK and sister company Woolworths thus decided that they had to start looking into selling off the distributor’s assets rather than selling the company as a going concern, though they say they will still consider offers for the company as a whole if any are made.
375 workers have been kept on to keep the company ticking over in the meantime, but the future for them doesn’t look so good either.
Dan Butters of administrators Deloitte told reporters on Friday: “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”.
He added that administrators were working with Job Centre Plus and the Insolvency Service’s Redundancy Payments Service in relation to the redundancies.
