Collapse of supplier is sour note for WHS

11 April 2012

WH Smith has run out of swathes of CDs and DVDs at its stores as the High Street continues to suffer from the collapse of Woolworths.

The retailer was among those supplied by music distributor Entertainment UK, which went into administration along with parent Woolworths earlier this month.

WH Smith's website lists a large number of CDs and DVDs as out of stock while stores are suffering from heavily depleted stocks of top-selling albums and movies.

Just before Christmas, rival music and games chain Zavvi became the first victim of the demise of Woolworths' wholesale subsidiary When EUK was placed in administration, Smiths was reported to be scrambling to find new suppliers.

A spokesman today declined to comment on the supply situation, but said the entertainment arm, consisting of CDs and DVDs, made up only about 10% of sales.

The news came as fresh signs emerged of the crisis facing the nation's shops, with department stores group Debenhams reportedly looking to raise cash to reduce its £1 billion debt mountain. Debenhams declined to comment on the story, but analysts said the move would be sensible given the grim outlook for retailers.

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