Seven hundred staff have today lost their jobs at EUK, as administrator Deloitte has given up hope for an immediate sale of the business. The press statement says: The Joint Administrators of Entertainment UK Ltd (EUK), the wholesale distributor of entertainment products, are to scale down efforts to sell the business as a going concern, having been unable to find a buyer. EUK will continue to operate with a reduced workforce of 375 employees, while the Administrators continue to realise value from the assets of the business. As a result, 700 employees have today been made redundant.
Dan Butters, Joint Administrator and reorganisation services partner at Deloitte, said: Regrettably, despite our continued efforts, we have been unable to identify a suitable buyer for the business. Whilst we will continue to consider offers for the sale of the business as a going concern, we will now focus on realising value from the company's assets.
Unfortunately, it has been necessary to make 700 redundancies at the company's head office and distribution centres in Middlesex. We will retain a core team of 375 employees.
The Administrators are working closely with Job Centre Plus to provide support and advice to employees who have been made redundant, and the Insolvency Service's Redundancy Payments Service has put together a team to quickly approve claims for employee entitlements.
Butters added: We are extremely grateful to the staff and management for their support throughout this difficult time. We would also like to thank the Job Centre and Insolvency Service for their cooperation and help.
The Joint Administrators confirmed that Bertrams Books, a fully owned subsidiary of EUK, and 2Entertain, a joint venture between EUK and BBC Worldwide, will continue to trade as usual.
Entertainment UK and Woolworths Plc were placed into administration on 27 November 2008. Dan Butters, Nick Dargan and Neville Kahn of Deloitte, the business advisory firm, were appointed as Joint Administrators.