Future Uncertain for 2|Entertain

[Ben Kirkham]

According to the Doctor Who News Page at Outpost Gallifrey,

“Talks are under way to try to prevent 2entertain, the company responsible for issuing DVD’s of classic Doctor Who stories, from going into administration.

The retail part of Woolworths, which owns 40% of 2entertain, is expected to be put into administration late on Wednesday evening. BBC Worldwide, which owns 60% of 2entertain is believed to be trying to purchase the Woolworths shares for £100 million. BBC Worldwide is seeking fast-track approval from the BBC Trust to buy the business.

Another Woolworths subsidiary, Entertainment UK, which supplies books and DVDs to supermarket groups, is being put into administration. It is unsure how this will affect 2entertain as the company distributes about 35% of its DVDs and CDs to outlets such as Zavvi, Sainsbury’s and Asda.”

I really hope that the BBC buys it, as 2|Entertain have worked wonders with the DVDs since they arrived on the scene. The Red Dwarf, Doctor Who, and Twilight Zone DVDs have really benefitted. Also, if 2|Entertain went into administration, what would become of the regular Dr Who releases?

Topic

[Ian Symes]

2|Entertain is perfectly safe, as far as I can tell. I wouldn’t worry.

[Ben Kirkham]

Thank you. TBH, the Woolworths situation doesn’t surprise me. I work for Tesco (sadly) and I’ve recently seen exactly how badly Woolworths have been doing. A shame, really, because they used to be the best around.

[TheLeen]

What does “go into administration” mean?

Edit: D’oh, found it. Bankrupt. How?

[Tarka Dal]

Probably because they take prime retail locations and then use them to sell pick n’ mix. Admittedly they sell other stuff too, but it’s usually stuff you can buy a few doors down from Wilkos or Tesco a lot cheaper. Hence…bugger.

[hummingbird]

> but it?s usually stuff you can buy a few doors down from Wilko?s or Tesco a lot cheaper

Soon that may not be the case as
1) Woolies may have to sell off all their existing stock dead cheap, and
2) Entertainment UK supplies a great many retailers with DVD/CD/etc, and without their supplier many of these retailers may run out of stock for Christmas and
3) in the current climate, when they’re depending on the Christmas trade, this may mean a lot of other stores may be in trouble soon.

[Tarka Dal]

I agree with ‘3’, but ‘1’ doesn’t really make too much difference. Look at Music Zone, prior to last xmas. They had ridiculous sales on, presumably because the administrators were recovering whatever money they could. Woolie’s survival appears entirely based on a buyout. Then if it does survive it needs to really come up with some kind of an idea at what it’s key markets are as clearly for the last 10-20 years it’s been completely unfocused.

[pfm]

W H Smith will be next. Whenever I go in I think ‘remind me again why I should buy a book, CD or DVD from here?’ The only things I ever buy are magazines (and that’s rare now) or a bottle of Coke. Because they just do bits of everything, like Woolworths, they will struggle. I only need two places – Sainsburys and Waterstones. The rest can flip off afaic.

[Tarka Dal]

You’re probably right. It’s a shame, but it’s just an evolution of sorts really. Anyone else find the backs of Woolworths really strange places?

I really should explain that, but meh….it’s home time!

[Steve Harris]

What I find a tad ironic is the fact that Woolworths own such a high profile distribution network and 40% of 2Ent yet remain dearer than most of their rivals.
Clearly there’s a lot more to it but why invest in all this and shoot yourself in the foot?

The sad thing about all this, especially in the smaller towns, is the loss of jobs.

As a side note, at 7.30 pm last night Woolies were still interviewing people for part time Xmas jobs, including my 16 year old daughter. Despite our doubts the management remained conviced they would ‘have’ to still take on temporary staff.

[Danny Stephenson]

my mum works for woolies, apparently they’ve still got jobs until 2009, then it’s a bit grey from there.

[Dave]

According to the Doctor Who News Page at Doctor Who Online:

2|entertain NOT facing administration

Contrary to reports elsewhere online 2|entertain are not facing administration.

A few online sites are stating that 2|entertain, (the BBC’s commercial arm for Doctor Who DVDs), is facing administration.

The rumours have surfaced in connection with the recent news that high street chain; Woolworths, which has links to 2|entertain, has itself gone into administration.

Having spoken to the press department at 2|entertain, DWO can confirm that this news is not true and that it is ‘business as usual’.

UPDATE: The BBC has also confirmed 2|entertain is safe on their News page (http://news.bbc.co.uk/1/hi/business/7751714.stm), stating the following:

“Woolworths’ joint venture with BBC Worldwide – publisher 2 Entertain – will not go into administration as it is owned by Woolworths’ parent company.”

[John Hoare]

W H Smith will be next.

Nah, they’re safe. Forgetting about the stores, their distribution business has a near-monopoly on distributing newspapers and magazines throughout the country.

Admittedly, that’s a business with an uncertain future, with the net. But they’re safe for a few years.

[hummingbird]

> apparently they?ve still got jobs until 2009

So that would be, erm, at least four weeks then…?

[Danny Stephenson]

So that would be, erm, at least four weeks then??

It is, yes. That’s right. Well done.

[Author]

Replies