Collapse of Woolworth EUK prompts fears

Record labels are fearful of potential sales troubles in Britain after the collapse of the Entertainment UK division of the Woolworths Group.

The Daily Mail said Saturday that record executives are struggling to find new ways to get their new products to consumers during the holiday season after Woolworths Plc and EUK board members announced the companies would no longer be in operation.

The EUK division was responsible for delivering 30 percent of all compact discs and DVDs to British businesses.

Among the businesses that routinely used EUK services were the Asda supermarket chain and British retailer, WH Smith.

With such highly anticipated album releases as singer Britney Spears' new album Circus, and Take That's new album The Circus set for release, EUK's collapse has some labels and retailers concerned.

But an Asda spokesman said the grocery chain will not alter its plans for the albums' releases despite delivery concerns.

We are pushing ahead with a planned national poster campaign for a new range of DVD box sets, and can reassure fans of Take That that we will have their new album in store from Monday, the unidentified official told the Mail.