Woolworths collapse causes Zavvi website shut-down

Entertainment retailer Zavvi has shut down its website because of stock shortages caused by the collapse of Woolworths.

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.

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