Zavvi suspends online trading

Entertainment retailer Zavvi has moved to suspend its online sales for CDs, DVDs and games following the financial collapse of Woolworths.

High street institution Woolworths entered administration last week after its sales were significantly impacted upon by the rise of the market for downloadable music.

Though Zavvi - formerly Virgin Megastores - is not connected to Woolworths PLC, its primary supplier of CDs, DVDs and games is Entertainment UK.

The latter, Woolworths' main distributor, also went into administration last week.

A statement on the Zavvi website said: "Regretfully, at this time we are 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 the move could affect thousands of families awaiting their Christmas gifts, the statement added that customers who have placed orders but not received their products are likely to have their transactions cancelled and money refunded.

"In addition, to avoid any uncertainty, we will be cancelling existing customer orders where delivery cannot be guaranteed," it explained.

"This will take place in the next few days and you will receive email confirmation if this applies to you."

The collapse of Entertainment UK meant that many branches of Woolworths, Zavvi and WH Smith did not carry copies of the new albums by Take That and Britney Spears, the biggest releases of the week.