The high street has suffered another set-back following the announcement of HMV and Jessops both entering administration.
Blockbuster GB Limited, the DVD and games rental firm, announced yesterday that it too has entered administration due to a change in the way we watch films and increased pressure from internet providers, such as LOVEFiLM and Netflix.
Deloitte have been appointed administrators and are hopeful that a buyer will be found to help secure the fate of the 528 commercial properties and 4,190 jobs currently at risk.
Lee Manning, Restructuring Services Practice Partner for Deloitte, said: “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.”
Unlike HMV, Blockbuster will still be honouring gift cards and vouchers that many people will have been given for Christmas.
“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,” Mr Manning added.
With almost 1,000 stores at risk of shutting from the three combined administrations, it does make you think about the future of the high street, but this is not a new concern. The high street has been in the news for years with the threat of demises imminent and the Government calling on the skills of top retail expert, Mary Portas to help resolve the problem.
Portas drew up a list of recommendations to help boost the high street and also launched Portas Pilot Towns, which is designed to help 12 towns to turn things around. The chosen towns include: Croydon, Stockport and Wolverhampton.
Do you think Mary Portas’s intervention is too little too late? Were you an avid DVD renter at Blockbuster or have you switched to a more modern way of watching films? Share your experiences with us below.
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