Zavvi stole my money!

I recently ordered a box set from zavvi. For whatever reason, the order didn't go through and when I eventually got a response to my e-mail they said they had cancelled it.
Rubbish service I thought, so I ordered the boxset from somewhere else. In the meantime, Zavvi have taken £25 from my bank account. This wasn't even the price of the dvd I was buying.
I'm trying to get it back but all they keep saying is that I'm seeing 'ring-fenced' funds and they haven't actually taken my money.
I've spoken to the lovely people at the Co-op (who are great by the way, the nicest, most helpful ladies and gentlemen of the banking world) and they assure me that zavvi have in fact taken my money.
Given that zavvi are refusing to acknowledge this what's my next step? Do I report them to the police for theft? Take them to a small claims court?
Any advice greatly appreciated.
Rubbish with money, hoping to get better :o
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