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Woolies administrators taking bid for EUK CD stock

By | Published on Thursday 12 February 2009

The administrator of Woolworths’ now defunct CD and DVD distribution firm EUK is reportedly planning to auction off the contents of the firm’s warehouses later this week, which includes an estimated 2.9 million CDs.

According to the Cue Entertainment website, administrators Deloitte are already taking bids for the stock.

Some worry any sale, which will presumably provide the buyer with millions of CDs at well below their normal wholesale value, will enable the buyer to sell CDs at vastly deflated prices, perhaps resulting in a mini-price war on the high street which could impact on other record sellers and the labels who are already facing losses because of EUK’s collapse.

Someone should tell Deloitte that when you have lots of spare CDs you need to get rid of you take them to Music Video Exchange on Berwick Street. Though you get a much better deal for exchange than cash, do you think Woolworth’s creditors would except Music Exchange vouchers as repayment?