The firm, which has been hit by competition in recent years from online retailers and supermarket chains, had developed the Source brand in conjunction with Wolff Olins.
But it is understood that the launch has run into unspecified difficulties.
Other names are now being considered alongside ongoing efforts to successfully secure Source ahead of an introduction planned for next year. Britannia's marketing director Adam Tuson, confirmed the company was exploring several options, and said Britannia would still be retained alongside another brand name for the new venture targeting younger and more style-conscious consumers.
Tuson also said Britannia's £12m creative account would be awarded to Proximity London. A media shootout between MediaVest and MediaCom will be resolved by the end of the week.
The new brand is designed to give Britannia a more modern and edgy feel and reflect its diversification beyond music and into the broader home entertainment market (Marketing, August 29).
The company is keen to position itself more aggressively as a service-oriented brand. Britannia has around 1.5 million members, and managing director Ford Ennals wants to grow a much larger customer base by using the internet and other new media to offer a better service.