Blockbuster Enter Administration, Will Still Take Gift Cards
You can stop worrying about that VHS copy of the Mortal Kombat film you forgot to return to Blockbuster in the late 90’s — the DVD rental firm has joined the likes of HMV and Jessops, announcing that it too is set to enter administration.
The chain, which has over 500 UK stores employing some 4,000 staff, has appointed Deloitte to handle the business whilst a new buyer is sought.
Blockbuster stores up-and-down the country will remain open for the time being, and it has been confirmed that, unlike others, the chain will still be accepting gift cards and store credit notes.Lee Manning, from appointed administrator Deloitte, said that they are:
“working closely with suppliers and employees to ensure the business has the best possible platform to secure a sale”
Manning continued, adding that:
“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.”
The video rental company, which also rents out a range of videogames, has suffered in recent years due to not adapting to a changing market and stiff competition from the likes of Amazon’s LoveFilm and Netflix.