Blockbuster UK Goes Into Administration
DVD rental firm Blockbuster will go into administration after struggling against internet competitors.
Lee Manning, Matthew David Smith and Neville Kahn, partners at Deloitte business advisory firm, have been appointed Joint Administrators to Blockbuster Entertainment Limited and Blockbuster GB Limited who trade as Blockbuster, the DVD and video games rental company.
Blockbuster is headquartered in Uxbridge, with 528 stores across the UK employing 4,190 staff.
Lee Manning, Joint Administrator and Partner in Deloitte?s Restructuring Services practice, commented: "In recent years Blockbuster has faced increased competition from, internet based providers along with the shift to digital streaming of movies and games.
"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. During this time gift cards and credit acquired through Blockbuster's trade-in scheme will be honoured towards the purchase of goods."
The first Blockbuster store in the UK opened in south London in 1989. The firm launched an online DVD rental operation in 2002, and the company's website, blockbuster.co.uk, sends out more discs per customer than other online DVD rental services in the UK.
However, this online rental market became increasingly crowded with rival services, with consumers' interest in streaming films over the internet is growing fast.
Blockbuster UK has closed more than 100 outlets in the past few years.
Blockbuster went bankrupt in the US in 2011, but was rescued by US pay-TV provider Dish Network in a $320m deal, which saved hundreds of stores from closing.
Blockbuster is headquartered in Uxbridge, with 528 stores across the UK employing 4,190 staff.
Lee Manning, Joint Administrator and Partner in Deloitte?s Restructuring Services practice, commented: "In recent years Blockbuster has faced increased competition from, internet based providers along with the shift to digital streaming of movies and games.
"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. During this time gift cards and credit acquired through Blockbuster's trade-in scheme will be honoured towards the purchase of goods."
The first Blockbuster store in the UK opened in south London in 1989. The firm launched an online DVD rental operation in 2002, and the company's website, blockbuster.co.uk, sends out more discs per customer than other online DVD rental services in the UK.
However, this online rental market became increasingly crowded with rival services, with consumers' interest in streaming films over the internet is growing fast.
Blockbuster UK has closed more than 100 outlets in the past few years.
Blockbuster went bankrupt in the US in 2011, but was rescued by US pay-TV provider Dish Network in a $320m deal, which saved hundreds of stores from closing.
