Zavvi stops orders after supplier collapses

High street retailer Zavvi said today it had stopped taking DVD, music and games orders after the collapse of Woolworths left it unable to guarantee delivery.

In a notice to customers on its website, Zavvi said it also planned to cancel all existing customer orders where stock could not be guaranteed.

The company said most of its DVDs, music and games products are supplied by Woolworths' Entertainment UK arm, which fell into administration last week.

"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," Zavvi said.

The company added: "We have not taken this decision lightly, but we believe that this is the right course of action under the circumstances."

Books, calendars and a limited range of other products are not affected by the cancellation and customers can still buy stock in store.

Zavvi said all affected customers would receive email confirmation in the next few days and any that have already paid for their orders would be refunded.

It is believed that there are currently no deliveries being made by Entertainment UK (EUK) after its suppliers froze stock orders to protect their positions until a deal can be reached with administrators Deloitte.

A spokesman for Deloitte said tonight that it was in "constructive talks with suppliers".

EUK's other customers include Tesco, Morrisons and WHSmith, according to the company's website.

No-one at Zavvi was available to comment tonight.

Woolworths' stores arm is still trading while buyers are sought for some or all of the business.

The retailer, which opened its first store in Liverpool in 1909, has seen sales plummet as customers turned to supermarkets or the internet to gain better value.

The group made pre-tax losses of almost £100m during the six months to the beginning of August.

Woolworths' publishing business 2Entertain, a joint venture with the BBC's commercial arm BBC Worldwide, is not in administration.