VIDEO RENTAL SHOP Blockbuster became the latest UK retailer to go into administration today, just a day after HMV met the same fate.
Like HMV, Blockbuster has appointed Deloitte as its administrator, as it looks to seek a buyer to prevent the closure of its 528 UK stores, which employ 4,190 staff. The company has yet to release a statement, but it's believed to have been hit hard by internet based competition from services such as iTunes and Netflix.
Deloitte administrator Lee Manning spoke with Sky News about Blockbuster. "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," he said.
"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.
Deloitte said that unlike HMV, Blockbuster will continue to accept gift cards. Manning said, "During this time gift cards and credit acquired through Blockbuster's trade-in scheme will be honoured towards the purchase of goods."
Blockbuster's collapse comes just one day after HMV announced that it had gone into administration. The music retailer, which suspended its website today, is seeking a buyer to save its 250 stores and 4,500 staff.
The news of both HMV and Blockbuster falling into receivership administration comes just months after UK high street electronics retailer Comet also collapsed due to growing online competition.
We've contacted both Blockbuster and HMV for further information. µ