Reports have emerged that another high street chain – video (and video games, of course) retailer Blockbuster – is about to (or, indeed, already has) enter administration. It’s a worrying time for the UK economy, especially the brick and mortar stores.
Sky News – the first to report this – is claiming that the company has “collapsed” and has called in the administrators today. Another source says that there were already plans to close 150 stores over the next six months.
Blockbuster - now in the hands of administrators.
Sky says that Deloitte are the administrators. “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 a spokesperson.
“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.” This is in contrast to the situation at HMV, where gift cards are not being honoured.
The company currently employs around 4,000 people across 500 stores.
It’s been a terrible week on the high street – giant HMV entered administration yesterday leaving very few places to pick up video games, music and movies outside of online.