The music industry is facing a potential crisis at retail heading into quarter four after labels last week refused credit to EUK because of fears about its owner Woolworths Group's financial future.

Woolworths said in a statement, "While it is true that some credit insurers are tightening terms of trade, we are trading as normal with our suppliers and will continue to do so."

However, Music Week understands most key suppliers last week took the step of putting the leading ...