Deloitte, the administrator of Entertainment UK, has announced that it is no longer seeking a buyer for the wholesale distributor and instead is beginning the process of closing down the business.
Approximately 700 workers have been made redundant today and EUK will continue to operate with a reduced workforce of 375 employees, while the administrators continue to release value from the assets of the business.
"Regrettably, despite our continued efforts, we have been unable to identify a suitable buyer for the business," commented Dan Butters, reorganisation services partner at Deloitte.
"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."
Deloitte has said it is working 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 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."