Wednesday, January 16, 2013
Blockbuster goes into administration - a victim of the internet business.
MOVIE rental giant Blockbuster UK has gone into administration, it was announced today (Wednesday).
There is no information as yet on how individual stores – including the one in Exmouth - will be affected.
Partners at Deloitte have been appointed as joint administrators to Blockbuster Entertainment Limited and Blockbuster GB Ltd, which who trade as Blockbuster, the DVD and video games rental company.
The company has 528 stores across the UK employing 4,190 staff.
Lee Manning, joint administrator and partner in Deloitte’s Restructuring Services, said in recent years Blockbuster had faced increased competition from the internet 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,” he said.
“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.”