News Article

Blockbuster UK Joins HMV In Administration

Posted by Damien McFerran

UK games retail suffers its second blow in the space of a week

This week, HMV - the UK's last major high street entertainment retailer - slid into administration after suppliers declined to help the ailing chain, putting around 4,350 jobs at risk.

The bad news for UK retail doesn't end there, however - Blockbuster UK has also announced its intention to enter administration. The chain has 528 stores in the UK and employs 4190 staff. Although its primary focus is movie rental, in recent years it has built up its video game retail arm and has attempted to go toe-to-toe with the likes of GAME and Gamestation - the latter of which is now defunct.

Deloitte administrator Lee Manning had this to say regarding the news:

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 move only impacts Blockbuster's UK outlets - stores outside of the UK remain unaffected and continue to trade as normal.

The shift towards online entertainment claims another victim, then - you have to wonder if video game retail will even exist on the high street in a few years' time.

[via eurogamer.net]

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User Comments (20)

Marakuto

#2

Marakuto said:

If HMV and Blockbuster both go down, the only shops I could turn to on the high street is CEX & Gamestation.

Tasuki

#3

Tasuki said:

Not a big surprise Blockbuster had to be rescued here in NA by Dish Network. If that didnt happen I am sure that Blockbuster would have been gone long ago.

rjejr

#4

rjejr said:

Administration just doesnt have the same ring to it as bankruptcy.

dizzy_boy

#5

dizzy_boy said:

TBH, I'm not suprised, every blockbuster I've walked passed were always quiet. Their business model is way more outed than HMV's.
Besides, who really wants to rent films when you can either pick them up cheap at HMV, download them, or watch them on SKY.

AMR

#6

AMR said:

Sad times for high street game stores. Gamestation, HMV & now Blockbuster. Even the supermarkets are limiting their game stock. I really hope these closures don't effect Nintendo UK releasing games over here. We have it bad enough as it is. I've bought my games online for a long time now (due to games being cheaper with a superior selection) but this still saddens me somewhat. Now it makes sense to me why no matter which store I go into in Manchester I can hardly find any Wii U stock, sad times indeed.

hbkay

#7

hbkay said:

What annoys the piss out of me, is that if both hmv and blockbuster go, then the only place to shop for games on the high st is GAME - THE VERY COMPANY THAT WAS UP poo CREEK THIS TIME LAST YEAR AND MADE HUNDREDS OF PEOPLE REDUNDANT!!!!! Yet they scraped through it and are going to reap the rewards......... bleeps!!

madgear

#9

madgear said:

The issue isn't so much games now as movies. The only places that stock DVDs (and Blu Rays) now are supermarkets, but they have a very small selection. Good luck finding anything more than a couple years old or something that didn't chart there.

Buying discs online, streaming or Sky TV is the only way now. Streaming and Sky don't have the newest films or the classics so, for the majority of titles, that just leaves Amazon. In a way it doesn't affect me too much as I can still get hold of what I want, but I bet the movie industry isn't going to be happy as sales will definitely fall (and they'll blame it on piracy).

Mk_II

#10

Mk_II said:

I've bought my games online for a long time now

we always reap what we sow...

Bulbousaur

#13

Bulbousaur said:

Never bought anything from them apart from a few Wii Shop Points cards before I had a bank card back when I was 13 or something. Not a big deal for me. But this was coming from a mile away from the state it is in the US, and the Blockbuster near me closed down a couple of months ago. I do hope the employees get more jobs quickly though...

Peach64

#14

Peach64 said:

The only surprise for me is that Blockbuster has lasted this long. Why anyone would choose them over Love Film is baffling.

ToxieDogg

#15

ToxieDogg said:

@hbkay I'll never shop at GAME again, they're abominable and I'm surprised they didn't go out of business last year (they should have done IMHO). But there's always places like Grainger Games and CEX as much better alternatives. At least for now......

Wintendo

#16

Wintendo said:

I honestly thought blockbuster was already done, as my town's store closed, and all of them in the city nearby. Anyways, this is sad news... I have nowhere to rent games :(

shake_zula

#19

shake_zula said:

I work at Blockbuster :[

The business plan in recent years has been to move away from movies (because nobody wants DVDs anymore) and towards games, so this would be more of a blow for the gaming industry than people realise. We're always associated primarily with movies, but that won't be the case in the future, if we manage to stay afloat.

Banker-Style

#20

Banker-Style said:

It won't be long before we'll be buying all our stuff from online,and ending up like the Humans in Wall E.

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