Blockbusters goes into administration
High street DVD and video games rental firm Blockbusters has become the latest retailer to go into administration.
Across the UK the company has 528 stores employing 4,190 staff. There are stores across the region, including in Milton Keynes, Newport Pagnell, Kempston, Biggleswade, Hemel Hempstead and Tring.
Gift cards and credit acquired through Blockbuster’s trade-in scheme will be honoured, the administrators say.
The news follows the collapse of photographic store Jessops and the move into administration of entertainment retailer HMV.
Joint administrators have been appointed to run the business from advisory firm Deloitte. One of them, Lee Manning, said the core of the business is still profitable but it has been hit by online competition.
Lee Manning, a partner in Deloitte’s Restructuring Services practice said: “In recent years Blockbuster has faced increased competition from, internet based providers along with the shift to digital streaming of movies and games.
“We are working closely with suppliers and employees to ensure the business has the best possible platform to secure a sale, preserve jobs and generate as much value as possible for all creditors.
“The core of the business is still profitable and we will continue to trade as normal in both retail and rental whilst we seek a buyer for all or parts of the business as a going concern. During this time gift cards and credit acquired through Blockbuster’s trade-in scheme will be honoured towards the purchase of goods.”
The other joint administrators to Blockbuster Entertainment Limited and Blockbuster GB Limited, based in Uxbridge, are Matthew David Smith and Neville Kahn.
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