Blockbuster is the latest high-street chain to succumb to the ongoing financial recession, announcing that the video and game rental store is to enter administration.
The store’s fortunes had been on the decline for many years, struggling to make ends meet in the wake of the rise of internet movie piracy, web streaming through services like Netflix and LoveFilm, and LoveFilm’s own postal movie and game rental services.
4,190 jobs across 528 stores are now at risk.
Sky News posted the following statement from Lee Manning of Deloitte, the firm’s appointed joint administrator:
“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 news follows similar woes for HMV, who entered administration yesterday, and Jessops who went into administration last week.
More news as we get it, but are thought are with anyone whose livelihood has been affected by administration procedures this week.