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Reports Suggest Blockbuster To Enter Administration

First HMV, now Blockbuster.

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.
Blockbuster is apparently stuck with huge amounts of stock it’s not finding easy to shift and is unable to attract new releases.

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.

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34 Comments
  1. hazelam
    Member
    Since: Feb 2009

    i thought they went bankrupt a few years ago.

    Comment posted on 16/01/2013 at 15:55.
    • Bilbo_bobbins
      Member
      Since: Jun 2009

      me too. Can’t say i will miss them to be honest

      Comment posted on 16/01/2013 at 16:09.
  2. Bilbo_bobbins
    Member
    Since: Jun 2009

    Blockbuster are a waste of space and have been for years. Infact I thought they had shut down anyway as there aren’t any near where I live. Still not good news, but again it creates space for new business to thrive

    Comment posted on 16/01/2013 at 16:08.
  3. The Lone Steven
    Never heard of him.
    Since: May 2010

    Yay! Another company going bust thus leaving room for yet another coffee shop,charity or supermarket. :-/ I hope BB won’t go bankrupt as they are fairly decent. Why do i suspect in 5 years time the high street will just be overpriced coffee shops,charity shops and supermarkets? :S

    Comment posted on 16/01/2013 at 16:35.
    • cc_star
      Team TSA: Writer
      Since: Forever

      Because the high street offers nothing that’s worth paying the premium for over online.

      Parking hassle & expense, queues, often ignorant, miserable, unhelpful & useless staff

      There’s no reason why the high street can’t work. Price isn’t the only buying decision, people regularly pay premiums when the service or experience they receive ‘add value’

      Blockbuster was staffed by many brain dead morons, Blockbuster had trouble after they bought Choices Video a few years back and were stuck with stores they didn’t want… And along with Sky going from strength to strength and lower cost rivals like LOVEFiLM & Netflix they had less than no chance if their business model didn’t ‘add value’ to the sale to make it worthwhile choosing them over other companies.

      I worked in retail for a long time, I managed in retail for quite a while and I managed retail managers for a long time, it’s tough out there, even in ‘boom years’ it’s what you add every sale, every day, every week & every year that makes the difference and keeps people coming back & in turn telling more people.

      I haven’t seen one business in trouble or closing that gets these basics right, everyone in trouble needs to have worked far harder.

      Comment posted on 16/01/2013 at 18:01.
  4. wonkey-willy
    Member
    Since: Jan 2010

    oh dear i got a free voucher for some maltesers…
    reckon i be putting that in the bin than..
    is it any surprise their rental prices were ridiculous..and basically love film cornered the online rental..
    shame really their marketplace wasn’t too shabby!

    Comment posted on 16/01/2013 at 16:44.
  5. Starman
    Member
    Since: Jul 2011

    Interesting they say the core business is still profitable, I think with some reorganization it can still continue. For me the advantage it has over game & hmv is the late opening times and bigger selection than supermarkets. Though the tradein prices seem to have plummeted recently.

    Comment posted on 16/01/2013 at 17:56.
    • cc_star
      Team TSA: Writer
      Since: Forever

      Yes it is interesting, perhaps a buyer will be able to come in, cherry pick the good stores & good staff and make a go of it

      Comment posted on 16/01/2013 at 18:03.
      • Starman
        Member
        Since: Jul 2011

        Yeah hopefully, I get a lot of new releases from BB when I know the supermarket won’t be stocking them.

        Your mention of them buying out Choices reminds me of Game buying out Gamestation, both left the buyers with stores near to each other & eventually shutting some.

        Comment posted on 16/01/2013 at 18:14.
  6. ABlokeCalledDaz
    Member
    Since: May 2010

    I’ve bought quite a few preowned/ex rentals from there over the years – still did at Xmas but a sad day, lots of staff with jobs at risk.

    Hopefully someone can retain a portion of the business and carry on once the dust clears.

    Comment posted on 16/01/2013 at 18:39.
    • Sympozium
      Member
      Since: Aug 2009

      Yeah… its sad, this all thanks to the online world :(

      Comment posted on 17/01/2013 at 01:26.
      • yiddo
        Member
        Since: Jun 2010

        The online world which is cheaper and much more efficient.

        Comment posted on 17/01/2013 at 09:08.
      • E8_BALL_
        Member
        Since: Jul 2010

        or world governments?

        Comment posted on 17/01/2013 at 09:44.
  7. Sympozium
    Member
    Since: Aug 2009

    …I can see Xtravision being next soon, its bound to happen…..

    Comment posted on 17/01/2013 at 01:25.
  8. Awayze
    Member
    Since: Jul 2010

    Who’s next?

    Comment posted on 17/01/2013 at 01:37.
  9. E8_BALL_
    Member
    Since: Jul 2010

    15yrs in retail. 3yrs in household cavalry & 1yr after being made redundant, even my applications for stacking shelves are being rejected. This economy is surely at a breaking point:(
    Stop imigration first step? I can see civil war, if it all crashes down.

    Comment posted on 17/01/2013 at 09:43.
    • The Lone Steven
      Never heard of him.
      Since: May 2010

      We can’t stop immigrantion because everyone has a right to move to another country and the EU would come down on us hard if we did stop it. But we should sort out the ecomony, force councils to implent a profit to rent ratio. The more profitiable your bussiness is, the higher the rent is, i am aware some companies would be put off but it would be a lot fairer on small companies as they won’t have to pay that much for rent at first. You are bloody luck to find shelf stacking jobs as there are feck all around here! :( I hate this country and Cameron. And the Welsh :-p

      Comment posted on 17/01/2013 at 10:35.

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