Eight months after escaping from administration after being purchased by Gordon Brothers Europe, Blockbuster is set to re-enter administration due to “poor trading” in the UK.
Earlier this year over 200 stores were shut down and 2000 people lost their jobs, with 264 store remaining open after the initial escape from administration. There will already been redundancies made at Blockbuster UK’s head office. The company will put up for sale once again, and will continue to trade as the process takes place.
Blockbuster has struggled to modernise and compete with the likes of Netflix and LoveFilm, as well as other On Demand services, losing out to the convenience of access to lots of content at home compared to renting from a traditional retailer.
We’d like to offer the best of luck to all those affected by the news, and hopefully the chain can turn things around.
Source: BBC
UPDATE: Blockbuster has confirmed through their social media channels that they won’t be able to honour any next-gen pre-orders, which will obviously affect a lot of people who were expecting to buy their PS4 or Xbox One through the firm.
@JackInTheBox05 We are sorry that you will be disappointed and that we can’t fulfil any xboxone or PS4 pre-orders at this time.
— Blockbuster UK (@Blockbuster_UK) October 29, 2013
It’s not being handled very well, it seems, as the staff member who asked wasn’t informed of this and had to find out over twitter.
Over on their Facebook page, they have explained that customers who have pre-ordered next generation machines will have to contact their store, or the headquarters if they’ve ordered online.
Source: Eurogamer
Jonnyismyname
I have 2 ps4’s 5 games and camera on pre order from my local blockbuster hope I can get money back. Now to look for shops still taking pre orders for 29th release date
Vallon
How very 90s!… Think that was the last time I visited a block buster store :o
Eldave0
Since “rising from the ashes” they have charged £51.99 for practically every new release. Not surprised to see them back in this state.
RangerSam
I buy my games there all the time, and I have never seen new release games priced at that? Except special editions.
Most are between £39.99 and £47.99 as they always have been.
Jonnyismyname
I asked how many pre orders they had in my local store they said over 20 for both systems
beeje13
Hmmmm the pre orders should have been allocated, the consoles won’t have disappeared. Its certainly possible for MS/Sony to sort this out and grab a PR bonus.
RangerSam
Ok, So …. First of all the company is NOT, I repeat NOT in administration.
It is simply up for sale, the Gordon Brothers bought into it without a clue, just as they did with Woolworths (and also crippled the business.)
These guys do all they can to make money from these sorts of businesses, and then throw them to the wind without a thought for any staff – they like money, they make as much as they can, then they move on.
SO let’s not be hating on Blockbuster, because in actual fact it is the company who bought them that is the issue here.
Regarding consoles – Microsoft especially TOLD Blockbuster that they HAD TO tell their pre-order customers to order this that and the other to guarantee their consoles, after they had already taken the deposits under the proviso that people only needed to pre-order the console, the issues started then, and though Gordon Brothers and their need for greed played a HUGE part in the major disappointment this brought about, it was by no means them that started it.
Renting DVDs isn’t expensive, but the offers could be better, they could have gone back to the 4 for 10 for 4 nights, and 5 for 12 for 5 nights on all new releases. These used to do really well, and based on customers asked now, would do well again, but again, the company that bought Blockbuster will not listen to the customers or the staff.
In short there is a HUGE demand for this still, as some have said people prefer to go and talk to people, pick up a physical disc, have some banter.
Blockbuster needs a good hard refreshing! New colours, new shop fittings, and they NEED to get their Trailers on TV sorted! People miss those! Money is nice, and I’ve read that Gordon Brothers have made a fortune off the back of the blockbuster name, clearing £30,000,000 of bankrupt stock they purchased for £6,000,000 from another retailer who was in trouble, and their only intention EVER was to use blockbuster as an outlet for them to make a fast few million ££ – once they have done that, they throw it to the dump, just as they did with woolworths.
Oh what it must be like to have bilions in the bank and to play with the lifes of thousands of people without a single thought.
My only wish is that the rumours are true, and that Netflix and Amazon are both interested in buying the company, maybe then we will see people with a passion for RENTAL & RETAIL taking care of this much wanted business