Blockbuster enters administration.....anyone else want to close?

DVD rental firm Blockbuster has become the latest UK High Street firm to go into administration after struggling against online competitors.

The chain has 528 stores and employs 4,190 staff.

Deloitte, the accountancy firm which will now take over running the firm, said Blockbuster UK would keep trading while it tries to find a buyer.

Music chain HMV and camera-seller Jessops both went into administration earlier this month.

"We are working closely with [Blockbuster UK's] 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."

Many people were unhappy with the administrators' decision not to accept HMV gift vouchers, some of which had been given as Christmas presents.

It is not yet known what will happen to HMV's branches and 4,350 staff. Unusually, all of Jessops' 187 branches closed within days of administrators being appointed.

In the run up to Christmas, electricals retailer Comet collapsed and shoe chain Stead and Simpson announced it was closing 90 stores.

The Local Data Company which monitors the number of empty shops, said the recent failures added up to the worst period for the High Street it has seen.

"The administration and potential closure of over 1,400 stores in less than a month far surpasses Woolworths' 807 in January 2009," said director Matthew Hopkinson.

"This has the potential to increase the national shop vacancy rate by nearly 5% to an all time high of over 19% if all the stores close and are not reoccupied.

"The big question is how many more retailers are struggling out there to the point of administration?" he said.

Store closures




The first Blockbuster store in the UK opened in south London in 1989, and the firm has sought to expand its services in recent years, including with a trade-in facility for pre-owned titles.

The firm launched an online DVD rental operation in 2002, and the company's website, blockbuster.co.uk, claims to send out more discs per customer than other online DVD rental services in the UK.

However, this online rental market became increasingly crowded with rival services, and now the popularity of streaming films over the internet is growing fast.

Blockbuster UK has closed more than 100 outlets in the past few years.

Blockbuster went bankrupt in the US in 2011, but was rescued by US pay-TV provider Dish Network in a $320m (£200m) deal, which saved hundreds of US stores from closing. The UK arm is also owned by Dish Network and run separately.

Before Blockbuster was bought by Dish Network, there were media reports of ambitious expansion plans, including selling electrical goods such as televisions, mobile phones, and iPods.

But business experts said Blockbuster's problems were all too similar to those hitting other retailers - failure to adapt quickly enough to a changing business environment and consumer habits.

'Altered landscape'

Professor Ajay Bhalla, of Cass Business School, said: "The company, like HMV, failed to transform its business model early enough. When it did, it found a fundamentally altered competitive landscape where the platform model had destroyed the traditional retail one.

"Firms like Blockbuster failed to face up to the enormity of the change and altered their business model on the fringes (eg selling second-hand products), rather than coming up with an innovative offering. It is shocking that the board and executive management failed to make bold choices."

Dr Steve Musson, a lecturer at the University of Reading and an expert in the economics of UK cities, added: "The retail businesses that we have seen going into administration since Christmas have a lot in common - they have large numbers of stores and have struggled to adapt to changing retail habits.

"Rents for retail businesses are usually payable quarterly, with many landlords most recently asking for payment at the end of December, which is why we often see retail failures coming in clusters."

Bloody hell whats Jamie going to do now ? He practically lives there

he has been and raped the of m$ points today lol

How's the time to go rent some games and keep them

Do you think you would get away with that ?

This is less of a surprise than HMV tbh, the likes of Lovefilm and Netflix must be taking customers off them left, right and centre!

I can't remember the last time I used my Blockbuster membership.

I am holding a memorial service if they close (all welcome)

and as Reece so writly put it i went and traded in Hitman paid a tenner and got a nice bonus helping of MS points lol, i am screwed if they close!

Reaper FWG wrote:I am holding a memorial service if they close (all welcome)

and as Reece so writly put it i went and traded in Hitman paid a tenner and got a nice bonus helping of MS points lol, i am screwed if they close!

Did you complete Hitman? If so was it worth it? Im about half way through but a bit bored now

no i got bored of it, it is a very good game but once id put it down i never got back into it.

So how many points you get at blockbuster ?

i got 4 x 1200 so 8400, spend 2 on UT lol gave 1 to my bro and have some sat on my account. and all for the euivalent of 26 quid lol im waiting for the closing down sale im going to rent some games and see if i can get away with i returned them.... ?!?!?!?!?!?! lol

I am the same as Chris, Cant remember the last time i used them. I have an unlimited Lovefilm account and get all the games and films i need.
I also owe BB £2 so will be interesting to see if i need to pay it back lol

FWG Plod wrote:I also owe BB £2 so will be interesting to see if i need to pay it back lol

Ah, so its your fault they are going under!

FWG Plod wrote:I also owe BB £2 so will be interesting to see if i need to pay it back lol

Fucking Rozzers, always thinking they're above the law

FWG Unky Al wrote:

FWG Plod wrote:I also owe BB £2 so will be interesting to see if i need to pay it back lol

Fucking Rozzers, always thinking they're above the law

Popped into the one in Manchester last night whilst working up there. They had a big sign outside saying SALE. I went in and actually think everything had a price increase !! Some of the prices for pre-owned games were nearly full retail, I could not believe it. They had Red Dead Redemption and GTA 4 both at £29.99 pre owned.

Price fail

haha yeah its my fault, that whole 2 quid is what tipped them over the edge, oh and Craig