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Zavvi, the rebranded incarnation of the Virgin highstreet music shop has suspended most of its online sales after its supplier was hit by the collapse of Woolworths. Woolworths entered administration a few days ago, taking its DVD and music distribution arm, Entertainment UK Ltd, with it. Entertainment UK Ltd supplies Zavvi and WH Smith who are struggling to find alternative suppliers. The news that Zavvi was suspending sales was posted on the company’s website this afternoon, 2nd December 2008. The message in full is as below:

Dear zavvi.co.uk customer

As you may know, Woolworths plc and Entertainment UK Ltd have entered administration. Whilst Zavvi is not part of either company, Entertainment UK Ltd is zavvi.co.uk’s main supplier of DVDs, music and games.

Regretfully, at this time we are therefore unable to fully guarantee the supply of DVD, music and games products to our customers (books remain unaffected). As you, our customers, remain our primary concern, particularly in the run-up to Christmas, we have decided to suspend taking orders for these products while we work to resolve the situation and get back to normal.

In addition, to avoid any uncertainty, we will be cancelling existing customer orders where delivery cannot be guaranteed. This will take place over the next few days and you will receive email confirmation if this applies to you. Please be assured that if we have taken payment you will receive a full refund.

We have not taken this decision lightly, but we believe this is the right course of action under the circumstances.

You can still purchase books, calendars and a limited range of other products as normal. Please be assured that we are doing all we can to resolve the situation as quickly as possible. Thank you for your custom and we look forward to serving you again at zavvi.co.uk in the very near future.

zavvi customer services

Zavvi Customer Notice

WH Smith expects to have its top sellers back on the internet soon. Stores are unaffected. Zavvi and Woolworths aren’t the only companies being hit by chain of supply problems which can cripple even profitable companies. There have been reports of other companies having sufficient demand from customers but unable to meet sales after suppliers hit probems.