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Entertainment UK

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Entertainment UK was a British retail supply and distribution company that supplied music, video, games, books and related entertainment products to major retailers.

Last updated August 26, 2026

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Overview

Entertainment UK, commonly abbreviated to EUK, was a British retail supply and distribution company rather than a consumer-facing shop brand. Its business was built around sourcing, warehousing and distributing entertainment products to non-specialist retailers, including supermarkets, department stores, book retailers and specialist entertainment chains. The company supplied categories such as recorded music, films, video games, books and other media products, allowing retailers without their own large-scale entertainment-distribution infrastructure to maintain broad catalogues. The business began in 1966 as Record Merchandisers Limited, established by EMI Music Publishing to distribute music to retailers outside the specialist record-store channel. It subsequently became a joint venture involving several record companies. Woolworths was its largest customer by the mid-1980s, and Kingfisher acquired the company in 1986. Record Merchandisers adopted the Entertainment UK name in 1988, reflecting the widening scope of its distribution activities. EUK became part of Woolworths Group after Woolworths was demerged from Kingfisher in 2001. Within the Woolworths structure, EUK was regarded as the group's most profitable operating arm and was strategically important because it served a large portfolio of retail customers. The company expanded beyond music distribution through the acquisition of Total Home Entertainment Distribution Limited in 2006. In 2007 it acquired Bertram Books, a major book wholesaler and distributor, further extending its role in the supply of books and entertainment products. Its customer base included major United Kingdom retailers such as Asda, Morrisons, Sainsbury's, Tesco, W H Smith and Borders, as well as Zavvi, which had previously traded as Virgin Megastores. EUK also operated two Amazon.co.uk Marketplace stores: Market Plus, associated with its Guernsey subsidiary Entertainment Plus (Guernsey) Ltd, and Direct-Offers, a United Kingdom stock-clearance operation. The company reported annual turnover of more than £1.4 billion and claimed to handle over 160,000 product lines, although these figures relate to the period before its administration and are not current financial data. EUK's dependence on the wider Woolworths structure became critical during the group's financial crisis. Woolworths Group and EUK entered administration under Deloitte in late November 2008 after restructuring and divestment efforts failed. EUK stopped deliveries immediately, disrupting customers that depended on it for stock. Zavvi, in particular, was unable to obtain replacement stock on comparable terms and entered administration on 24 December 2008. EUK continued with a substantially reduced workforce while administrators attempted to sell remaining inventory, assets and businesses. Bertram Books was sold to Smiths News, while discussions also took place concerning the lease of EUK's automated warehouse facilities. The company was ultimately dissolved on 20 April 2015. Its history illustrates the importance of centralized distribution in UK entertainment retail, as well as the vulnerability of a highly interconnected supply business when its parent group loses access to finance. EUK was principally a business-to-business infrastructure company, and its influence came from the scale of its retailer relationships and logistics operations rather than from direct consumer recognition.

History

Entertainment UK originated in 1966 as Record Merchandisers Limited, a distribution business created by EMI Music Publishing to supply recorded music to non-specialist retailers. The company later operated as a joint venture involving several record companies. Its early role was to connect music suppliers with retailers that did not operate as specialist record stores, establishing the distribution model that remained central to the business throughout its existence. Woolworths became the company's largest customer, and Kingfisher acquired Record Merchandisers Limited in 1986. Two years later, in 1988, the business changed its name to Entertainment UK. The new name reflected an expansion beyond its original music-distribution identity into a broader entertainment-supply operation. When Woolworths was demerged from Kingfisher in 2001, EUK became part of the newly established Woolworths Group. EUK was a strategically significant company within Woolworths Group. It supplied major retailers across the United Kingdom, including supermarkets, book retailers and entertainment chains. Its customers included Asda, Morrisons, Sainsbury's, Tesco, W H Smith, Borders and Zavvi. The company also operated Marketplace accounts on Amazon.co.uk through Market Plus, linked to Entertainment Plus (Guernsey) Ltd, and Direct-Offers, a UK-based stock-clearance business. The group broadened EUK's capabilities through acquisitions. In 2006, Woolworths Group acquired Total Home Entertainment Distribution Limited, which became part of the EUK division. In November 2007, EUK acquired Bertram Books, a major book wholesaler and distributor. This transaction strengthened the company's position in book distribution and diversified its product mix beyond recorded music, films and games. EUK was described as Woolworths Group's most profitable arm, and management hoped to preserve it while addressing problems in the group's retail business and liabilities. Those plans failed when restructuring discussions did not produce a viable solution. Woolworths plc and EUK entered administration under Deloitte in November 2008. The business immediately stopped deliveries, creating serious supply problems for customers. Zavvi was particularly exposed because it had relied on EUK and later entered administration on 24 December 2008. The administrators maintained a reduced operation while attempting to sell remaining stock and parts of the business. Seven hundred employees were made redundant in December 2008, and a further 134 positions were eliminated across four remaining EUK sites in January 2009. Prospective buyers held discussions regarding Bertram Books, which was ultimately sold to Smiths News. There were also talks with Gardners Books concerning the lease of EUK's automated warehouse at Greenford's Auriol Drive site, although the available historical account does not establish a completed acquisition of the whole EUK operation. EUK received industry recognition before its collapse, including the European Supply Chain Excellence award in 2005, the Global Retail Technology Forum award in 2006 and the Best Retail Buying Team award at the 2006 MCV Industry Excellence Awards. These awards reflected the company's logistics, technology and buying functions rather than a consumer-facing brand campaign. The Entertainment UK business was formally dissolved on 20 April 2015. Its trajectory—from a record-industry distribution venture to a broad entertainment and book wholesaler, followed by administration alongside Woolworths Group—shows how a large-scale distribution intermediary could become both a major operational asset and a major source of systemic exposure within a retail group.

  • 2015

    Entertainment UK is dissolved

    [1]

    The Entertainment UK business is officially dissolved.

  • 2009

    Bertram Books is sold to Smiths News

    [1]

    Administrators sell Bertram Books to Smiths News during the winding-down of EUK.

  • 2008

    Entertainment UK enters administration

    [1]

    EUK enters administration with Woolworths Group under Deloitte and stops deliveries.

  • 2007

    Bertram Books is acquired

    [1]

    Entertainment UK acquires Bertram Books, expanding its book-wholesaling and distribution activities.

  • 2006

    Total Home Entertainment Distribution is acquired

    [1]

    Woolworths Group acquires Total Home Entertainment Distribution Limited for inclusion in the EUK division.

  • 2006

    EUK receives industry awards

    [1]

    The company receives the Global Retail Technology Forum award and the Best Retail Buying Team award at the MCV Industry Excellence Awards.

  • 2005

    European Supply Chain Excellence award

    [1]

    Entertainment UK receives the European Supply Chain Excellence award.

  • 2001

    EUK becomes part of Woolworths Group

    [1]

    Following Woolworths' demerger from Kingfisher, Entertainment UK becomes a Woolworths Group business.

  • 1988

    Record Merchandisers adopts the Entertainment UK name

    [1]

    The company changes its name to Entertainment UK, reflecting its broader entertainment-distribution role.

  • 1986

    Kingfisher acquires the distribution company

    [1]

    Kingfisher plc acquires Record Merchandisers Limited after Woolworths has become its largest customer.

Products and positioning

A large-scale United Kingdom business-to-business distributor and supply-chain partner for entertainment and media products, serving supermarkets, department stores, book retailers and specialist chains.

  • Music distribution · 1966

    Recorded music distribution

    The company's original activity was distributing recorded music from record-company suppliers to non-specialist retailers. This function established EUK as an intermediary between rights holders, manufacturers and broad-based retail outlets.

  • Film and video distribution

    Home entertainment distribution

    EUK's broader entertainment operation supplied film and home-video products alongside music and other media lines. These products were distributed to supermarkets, department stores and specialist entertainment retailers.

  • Video games

    Video game distribution

    Video games formed part of EUK's wider entertainment catalogue. The company supplied retail customers with games and related products as part of its centralized purchasing, warehousing and distribution model.

  • Books · 2007

    Bertram Books

    Bertram Books was a major book wholesaler and distributor acquired by EUK in 2007. It expanded EUK's capabilities in book supply and became one of the businesses sold during the administration process.

  • E-commerce stock clearance

    Amazon Marketplace operations

    EUK operated two Amazon.co.uk Marketplace stores: Market Plus, associated with Entertainment Plus (Guernsey) Ltd, and Direct-Offers, a UK stock-clearance arm. These channels provided an outlet for inventory outside conventional retail supply contracts.

Brand decisions

  • 2008

    Administration and operational wind-downStrategy

    Background

    Restructuring discussions involving Woolworths Group failed, leaving EUK unable to continue normal operations.

    Action taken

    EUK entered administration under Deloitte and immediately stopped deliveries while administrators managed stock, staffing and potential disposals.

    Aftermath

    The company operated with a reduced workforce, sold Bertram Books, and was eventually dissolved in 2015. Its failure also contributed to supply problems for Zavvi.

    Reported annual turnover. In excess of £1.4 billion (Claimed by EUK before its 2008 administration)

  • 2007

    Acquisition of Bertram BooksM&A

    Background

    EUK aimed to expand beyond music and general entertainment distribution into book wholesaling.

    Action taken

    Entertainment UK acquired Bertram Books, a major book wholesaler and distributor.

    Aftermath

    Bertram Books was later sold to Smiths News during EUK's administration.

  • 2006

    Acquisition of Total Home Entertainment DistributionM&A

    Background

    Woolworths Group sought to strengthen and broaden the EUK division's distribution platform.

    Action taken

    Total Home Entertainment Distribution Limited was acquired and incorporated into the EUK division.

    Aftermath

    The acquisition contributed to EUK's expanded role across entertainment-product supply, although the wider Woolworths Group later entered administration.

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