It's been revealed that eUK has not made any deliveries or taken any orders since it and sister company Woolworths went into administration last Wednesday. CD sellers supplied by eUK include Sainsbury, Asda, Morrisons and Zavvi.
However, the Entertainment Retailers Association says that the company's administrators Deloitte do plan to keep the company operational as it reviews the options for the future of the CD/DVD distributor, and that they therefore hope orders and deliveries will resume today, ensuring stocks don't run short for what is seen as being one of the big chart battles of the year, with both Take That and Britney's new long players released this week.
ERA Director Kim Bayley told reporters this weekend: "Retailers are determined that fans will not suffer because of EUK's problems. We are working around the clock to ensure adequate supplies reach stores in time for Monday. Britney versus Take That is shaping up to be an epic chart battle and we must make sure we do not run out of stock. It is vital that the current logjam in the system is unblocked as quickly as possible. EUK is currently neither accepting orders nor making deliveries, but we are hopeful it will be open for business by Monday. This is the busiest time of the year for fans buying music and video so we hope everyone concerned pulls out all the stops".
There is a double issue for the record companies and DVD publishers, because they need to see their releases in the supermarkets and on the high street in time for Christmas, but will be wary of handing over product to eUK without upfront payment, given the future of the company - and its ability to make good on debts - is far from assured. Bayley urged the record companies to do everything they can to ensure shops continue to be stocked.
It's not clear how much the record industry could lose out if eUK was to go under, ie how much the distributor currently owes record companies. With the financial position of eUK, or, more to the point, its sister high street retail business Woolworths, having been unstable for some time now, some entertainment companies had already withdrawn some of the distributor's credit facilities, however its though not insubstantial sums are still owing.
According to Billboard, film distributor Metrodome Group has revealed it is owed about £320,000. A statement from the company issued at the end of last week reads: "Entertainment UK was one of the largest customers of the company, and, at the present time, the board estimates that it owes the Company approximately £320,000. The directors are unsure as to the recoverability of this sum and are seeking clarification on its recoverability and effect on the Company. Shareholders will be kept appraised of developments".