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Blockbuster to re-enter administration as it fails to rival iTunes and Netflix

264 stores and 2,000 jobs at risk
Tue Oct 29 2013, 13:50
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VIDEO RENTAL SHOP Blockbuster is to re-enter administration for the second time, the firm's owner Gordon Brothers revealed on Tuesday.

Blockbuster first announced plans to enter administration back in January this year threatening 528 stores and 4,190 staff, with the firm admitting it had been hard by digital services such as iTunes and Netflix.

Some good news for the retailer followed soon after, with administrator Deloitte confirming the sale of 264 stores to Gordon Brothers Europe, saving around 2,000 jobs.

It seems that wasn't enough to save Blockbuster though, as Gordon Brothers announced on Tuesday that the firm would re-enter administration as it again suffered from poor trading. This perhaps doesn't come as much of a surprise, with Blockbuster making little change to its business in a bid to compete with digital services. 

We're still awaiting an official statement from Blockbuster, and we will update this article when we hear more. At the time of writing, the retailer's web site is still live and open for trading.

Blockbuster isn't the only entertainment retailer to struggle in recent times, with HMV recently exiting administration, having previously fell victim to online retailers such as Amazon and Play.com.

However, the firm is clearly fighting for survival with a new found focus on digital services. Earlier this month, HMV announced the launch of its own MP3 store, and has said it has other digital products in the pipeline. 

HMV digital MD James Couglan said, "I'm excited to say that we're putting music ownership back into focus with the launch of our new digital music products.

"For the first time, music lovers have the ability to experience the traditional feel of HMV on the high street and have the option to discover and build a digital music collection, delivered and managed across devices, from HMV, the Home of Entertainment." µ

 

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