Entertainment retailer Zavvi has shut down its website because
of stock shortages caused by the
collapse of Woolworths.
Woolworths owns Entertainment UK, a wholesale distribution
company with Zavvi, Asda and Borders as customers. Zavvi and the
other stores have had to enter into negotiations for direct supply.
Entertainment UK is Zavvi's main supplier and as a result the
retailer is "unable to fully guarantee the supply of DVD, music and
games products to our customers."
The company, which was created after a management buy-out of the
Virgin music stores, said in a statement on its website, "We have
decided to suspend taking orders for these products while we work
to resolve the situation."
Existing orders where supply cannot be guaranteed have also been
cancelled.
The company said, "We have not taken this decision lightly, but
we believe that this is the right course of action under the
circumstances."
Zavvi's
chief information officer Tony Johnson runs an IT department
with an in-house staff of 30. Some functions at the company are
outsourced.