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Blockbuster UK enter administration



It's turning out to be a rather sad week for the UK high street, with Blockbuster being confirmed as the latest store to enter administration.

HMV entered administration last night and now reports on Sky News and BBC News state that Blockbuster is also in financial trouble.

Blockbuster, which has 528 stores and employs 4,190 staff, has appointed Deloitte, the accountancy firm to handle administration, although the stores will keep trading while it tries to find a buyer.

"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," said Lee Manning, from Deloitte's Restructuring Services practice.

"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."

Blockbuster went bankrupt in the US in 2011, but was rescued by US pay-TV provider Dish Network. The UK arm is also owned by Dish Network but run separately.


Edited On 16 Jan, 2013

Comments
( 23 )
DynamiteWhyte's avatar
DynamiteWhyte 4 years ago
They came too late to the market in terms of running an online side of things too. They also haven't utilised their 'return dvd' thing which could be better for them if you could return to your local store rather than have to send them in an envelope. I've not been in Blockbuster for ages either. Their movies are sometimes good prices, but their game prices are a bomb.
LFC Bywater's avatar
LFC Bywater 4 years ago
The cause to this is Lovefilm and Netflix. So much cheaper and you don't need to leave you're house. Still sad to see them go as i used to rent games all the time as a kid from here. Surprised that they have lasted this long though.
Shuy's avatar
Shuy 4 years ago
Will the computer games and films they sell be reduced significantly? I want them!
Dead's avatar
Dead 4 years ago
Not sad to see them go, they are rip off merchants with awful customer service, so glad I switched to Lovefilm now.
Shuy's avatar
This is not a joke, I bought the original crystal Xbox from them and to my shock I found two game saved files on the computer and I also found the controller broken! They sold be a used Xbox as NEW! Unbelievable...
Shuy 4 years ago
HappyNoodleBoy's avatar
Their game rentals are/were a joke. Isn't it like £5 for 3 or 4 days?
HappyNoodleBoy 4 years ago
Datastatic's avatar
Lovefilm are terrible. They give all the good stuff to their customers on free trials to get them to sign up and then send a VHS of Critters to the people that pay.
Datastatic 4 years ago
HappyNoodleBoy's avatar
HappyNoodleBoy 4 years ago
Internet shopping will be the death of us all
PrometheusFan's avatar
PrometheusFan 4 years ago
Another bullet in the leg for UK high street retail.
Robichoico's avatar
Robichoico 4 years ago
It's owned by the lot who do HMV. It was to be expected
troublemaker's avatar
troublemaker 4 years ago
A left over relic from the days of VHS rental that couldn't keep up with the times. Plenty of nostalgic memories, sure, but Blockbuster, like HMV and (almost) GAME before it can't expect to stay competitive with online shopping and rentals without updating their practices!
Datastatic's avatar
Datastatic 4 years ago
Can Game hold on for next gen? Time will tell...
Robichoico's avatar
Well, they were SUPPOSED to be holding on until the Wii U came out and seeing where it went from there. They haven't really done anything to try and turn things around however in the meantime. They had the huge clearance sale which drew people in, got people getting some great bargains but that stopped and they put their prices up once again. I got Metal Gear Solid 3DS for £10 new online. It was £30 pre-owned in Game in their 'Sale' simple as that really.
Robichoico 4 years ago
no47's avatar
no47 4 years ago
Not a good start to the year for the retail sector. I've got friends who work for Blockbuster and they are most likely going to be out of a job soon. :( It's unfortunate, but highstreet shops will never be able to compete with internet only retailers, ie Amazon, Zavvi, Shopto etc because of shop overheads, ie rent, utility bills, staff wages, etc. Unless you get store exclusives like Game, or specialise in something other than games, dvd's, music, etc, you won't stand a chance in the long run.
Anonymous user's avatar
Brett 4 years ago
problem with today is that the highstreet still expects to be selling at the same price they always have, i feel bad for them but simple fact is if you can get it cheaper and easier off of somewhere online then you have no chance, what needs to be introduced are price matches( within reason ofcourse) i would rather sell 2 games for 40 a piece then 1 for the rrp if your the cheapest people will buy from you its as simple as that, people arent as care free with there money and technology means you could price compare just by scanning a bar code
neohawk's avatar
neohawk 4 years ago
ALL dedicated music, games and movie shops on the high street will be gone sooner rather than later. Online and even supermarkets are going to make sure of that. That being said i'd rather save by buying online than pay extra for the novelty of buying from a 'proper' game shop. You also get the added bonus of not being sold 2nd hand goods as new like ALL of the high street game shops did.
Anonymous user's avatar
Rachael 4 years ago
This is sad news for the staff but it was inevitable. Lovefilm is £5.99 a month and you can stream as many films as you want instantly. Blockbuster was Roughly £5 for one dvd for 3 nights. Its obvious that things were going to go pear shaped sooner rather than later. It is good though that they are still honouring the gift cards that have already been purchased unlike HMV.
Pyroloveridge's avatar
Pyroloveridge 4 years ago
tough break for another big company who hire a large staff base, but if you don't move with the times how can you expect to keep up? the business model for them showed signs of being flawed over 5 years ago yet the chose to do nothing whilst the board members sat on there fat pay checks
Dead's avatar
Dead 4 years ago
Least we got a good South Park episode out of it before they went under ;)
yoda soldier's avatar
yoda soldier 4 years ago
I liked my local block busters i got far cry 3 on day of release for £30.
yoda soldier's avatar
yoda soldier 4 years ago
I liked my local block busters i got far cry 3 on day of release for £30.
James26's avatar
James26 4 years ago
Again, another shop/company that overcharged for stuff that can be found cheaper elsewhere. Even their rental side of business became a joke, all I can say on that side is thank you LoveFilm (minus the small blip they had when they got taken over by Amazon and no new releases where available for around a month-ish). I'm not sad to see them go, I feel bad for the staff. I will have a fond memory of blockbuster though, it was from them that I rented Mario Kart 64 for the very first time and thus, helped my love of gaming.
drkmn302's avatar
drkmn302 4 years ago
With whats been happening over the last 2 weeks its not suprised me, we are going to see alot more high street stores going under this year, because ppl cant afford to spend. Online is becoming cheaper and with free delivery is making it easier for pplto purchase. Out of all of this I dont feel for the companies its the people that put there faith into the companies they work for and that wont have a job at the end of it...

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