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.