DCSIMG

Jobs threat after Blockbuster fail

Threat: The Preston branch

Threat: The Preston branch

Jobs are under threat at three branches of DVD and video rental firm Blockbuster after it collapsed into administration.

The firm yesterday appointed Deloitte following its collapse driven by competition from internet firms and digital streaming of movies and games.

It put more than 4,000 jobs at risk at its 528 branches across the country including on Corporation Street, Preston; Churchill Way, Leyland and George Street, 
Chorley.

Joint administrator Lee Manning said the chain had faced “increased competition” from internet 
providers specialising in digital streaming of movies and games.

He said: “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.”

Blockbuster will continue to accept gift cards and credit bought through its trade-in scheme for second-hand movies and games, as well as operating its loyalty scheme.

The collapse comes a day after another music and entertainment retailer, HMV, hit the rocks, with more than 4,000 jobs under threat.

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 £200m deal, which saved stores from closing and prevented tens of thousands of job losses.

 

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