The U.K. biz is looking at how to deal with the aftermath of Woolworths' retail and distribution businesses going into administration.

Woolworths Group ended discussions about the potential sale of its 815 stores last night (Nov. 26).

Labels trade body the BPI is now working with its members to see how they can protect themselves, particularly after Woolworths Group’s retail distribution arm EUK went into administration. It is understood that deliveries yesterday were severely affected; EUK supplies Sainsbury, Zavvi and Woolworths itself.

"EUK played a valuable and profitable role in the music supply chain and it is very unfortunate that Woolworths' wider difficulties have dragged it into administration," said BPI chief executive Geoff Taylor in a statement. "We've been advising our members on how they can insulate themselves against the risks of a failure of this type, and over the next few days we will consult further with members as to how they can best respond to this development and ensure continued access to all sectors of retail."

Woolworths Group is not in administration and is in discussions with BBC Worldwide concerning the possible sale of its 40% interest in DVD publisher 2 Entertain Ltd.

EUK and Woolworths’ shops will continue to trade under the administration of Deloitte, which has appointed restructuring firm Hilco to manage the retail chain. Woolworths' board had been in talks about selling the retail business to Hilco for £1 ($1.53) this week -- with Hilco expected to take on about £300 million ($464 million) of the group's £385 million ($596 million) debt.

A Woolworths Group statement said: “Following, and as a consequence of the termination of those discussions, the boards of Woolworths plc and Entertainment UK Ltd have concluded that there is no longer any prospect of those businesses being able to operate as a going concern. Accordingly, the boards of both companies last night resolved to file petitions for administration in the High Court.”

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