Magazine article Screen International

Blockbuster Calls in Administrators

Magazine article Screen International

Blockbuster Calls in Administrators

Article excerpt

The UK DVD rental store has gone into administration putting 4,190 jobs at risk, just a day after high street DVD and music store HMV suffered a similar fate.

Deloitte, who are also overseeing HMV, will now take over the day-to-day running of the firm. The accountancy firm have said that Blockbuster could not keep up with competition from internet-based film rental services.

Blockbuster, which has 528 stores across the UK, confirmed it will continue to accept gift cards and credit acquired through a trade-in scheme offered in-stores.

Speaking for Deloitte, Lee Manning from the Restructuring Services practice said: "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.

"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."

Blockbuster launched in the UK in 1989. It has closed more than 100 stores in recent years.

Lavinia Carey, director general at the British Video Association said: "The BVA is saddened by the news that Blockbuster has followed HMV into administration today. …

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