independent

Wednesday 16 April 2014

Blockbuster UK goes into administration putting 4,000 jobs at risk

Entertainment retailer Blockbuster UK has gone into administration, appointing Deloitte to seek a buyer for all or parts of the business, just days after rival HMV hit the rocks. Photo: Reuters

DVD and video games rental firm Blockbuster UK has gone into administration, putting more than 4,000 jobs at risk.

Deloitte, which is handling the administration, said the collapse was driven by competition from internet firms and digital streaming of movies and games.

The Uxbridge-based business opened its first store in London in 1989 and now trades from 528 outlets employing 4,190 staff.

Blockbuster is the third casualty in Britain's retail sector in the Christmas aftermath, with many specialist shops struggling against competition from supermarkets like Tesco, online retailers like Amazon and download sites like iTunes.



The retail sector has also been pressured by muted wage growth among its customers and by government austerity measures squeezing household budgets.



Camera specialist Jessops went into administration last week and said it will close all 187 of its stores resulting in 1,370 job losses.



But the move into administration on Monday of HMV, the 92-year old music retailer, has arguably struck the biggest blow to town centres.



Blockbuster, which rents DVDs and video games, opened its first store in the UK in March 1989. It launched an online service in 2002, but the DVD rental model became obsolete in the face of online rental subscription services such as Amazon's LoveFilm and digital streaming.



Deloitte's Lee Manning said the firm would be working closely with suppliers and employees to secure a sale, preserve jobs and generate as much value as possible for creditors.

Also in this Section

Classifieds

CarsIreland

Independent Shopping.ie

Meet, chat and connect with
singles in your area

Independent Shopping.ie

Meet Singles Now

Findajob

Apps

Now available on

Top Stories

Most Read

Independent Gallery

Your photos

Send us your weather photos promo

Celebrity News