Reports Suggest Blockbuster To Enter Administration

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.

[drop2]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. It’s a sad day! HMV now blockbuster but the again there is like one blockbuster here in birmingham

    • Yeah, i can testify to that.

  2. I was suprised that HMV went before Blockbuster when the news broke. It’s another sad day for those affected but it’s hardly a suprise. I haven’t rented anything from them in years

  3. Blocky B’s has been hanging on for several years and I’m amazed they’ve lasted this long. They were great in the late 90’s and in to the 00’s, but their business plan has been trumped for a good number of years. If I want a film then I can turn on Sky, Netflix (or any one of the number of streaming services), buy a DVD/BR or just get a torrent.

    I feel sorry for the store staff.

    • Ha ha, just noticed that one of my open tabs is Amazon.co.uk. Coincidence?

  4. I buy quite a lot of games from blockbuster, me and all my friends do in fact, as I find they offer really quite good prices on their games. I’ll be sad to see these guys go.

  5. The recent Blockbuster themed South Park episode hit the nail on the head. :/

    • South Park is absolutely genius these days. The show has really matured with the writers and while they still enjoy childish humour occasionally, it’s one of the best satire shows on TV

      • The first half of this season (and the last few seasons in general) were pretty crappy but it really picked up after the summer break. It’s because of the good episodes that I keep coming back to it. I know I’m out of the loop when I don’t get the South Park references but they are almost always spot on. It really is a great show that many people disregard because it the early days it wasn’t that satirical.

      • It’s excellent apart from the odd crap episode such as Towliee that was just plain weird. :) I plan to pick up every series in the near future. The animation was rubbish during the first few series but it improved and retained the style it had. Not many cartoons do that. I suspect it won’t go downhill but will end up retiring when the creators feel that they can’t do anything more with it.

  6. The writing was on the wall after Bob Holness died

    • I’ll have an A please Bob.
      What A is the term used for a rescue mechanism for insolvent companies and allows them to carry on running their business?

  7. http://www.bbc.co.uk/news/business-21047652 – BBC confirmed it’s in admin.

  8. *sniff* not Blockies! The only place I use to buy games more is Amazon.
    Then again, that previous sentence speaks for itself really doesn’t it? Where possible, people choose to shop online now.

  9. Blockbuster should have read the market and set up their own On Demand app.
    Ultimately, they should have been the first to do it.

  10. No surprises here. They have been on the ropes for years and narrowly avoided administration a year or two back.

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