Blockbuster in administration (From Malvern Gazette)

Movie rental company Blockbuster in administration

2:41pm Wednesday 16th January 2013 in News By Catherine Phillips, Reporter

DVD and video games rental firm Blockbuster UK has gone into administration following competition from the internet.

Deloitte, which is handling the administration, said the collapse was driven by competition from internet firms and digital streaming of movies and games.

Employing over 4,000 people in the UK, Worcester has two branches in Shrub Hill Trading Estate and Ambleside Drive.

It also has branches in Evesham, Tewkesbury, Kidderminster, Stourport and Bromsgrove.

Fortunately for customers, Blockbuster will continue to accept gift cards and credit brought through its trade-in scheme for second-hand movies and games.

Customers will also still be able to participate in the loyalty scheme.

It has been a dismal start to the year with HMV's announcement that it was in administration a week after Jessops collapsed.

More than 8,000 retail jobs have been put at risk during the last two days alone in a bleak week for Britain's high street.

Lee Manning, joint administrator and partner in Deloitte's restructuring services practice, said: "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."
 

Deloitte stressed Blockbuster's core business was profitable and they would be looking for a rescue deal for all or part of the business as a going concern.
 

Blockbuster's US parent went bankrupt in 2011, but was rescued by US pay-TV provider Dish Network in a 320 million US dollar (£200 million) deal, which saved hundreds of stores from closing and prevented tens of thousands of US job losses.
 

The UK group has sought to branch out in recent years in an attempt to revive business, including by expanding its online rental offering while also launching a trade-in service for pre-owned titles, allowing members to swap second-hand games and movies for cash or credit on their membership accounts.