Blockbuster Re-enter Administration, Cancel All Xbox One & PS4 Preorders
DVD and Videogame rental chain Blockbuster is set to go into administration for the second time this year, according to its current owner, placing some 2,000 jobs at risk.
The rental retailer first entered administration in January but were saved by Gordon Brothers Europe, a private equity firm, in March. Now, the nationwide firm finds itself in administration again.
Following Gordon Brothers Europe’s take over of the troubled chain, Blockbuster promised an increased focus on gaming. Speaking in April, new Managing Director Gary Warren said that Blockbuster had “an ambition to be much more of a partner to the games industry in the UK”, adding that the company was “serious about games”.
However, these renewed efforts have proved unsuccessful, with Gordon Brothers Europe affirming that their attempts to turnaround the loss-making company have failed.
Frank Morton, the chief executive of the Gordon Brothers Europe, said:
“Since the acquisition we have worked extremely hard to reignite the Blockbuster brand, make our investment work and put the business on a viable footing.
“Despite our best efforts, we regret that we are now forced to make some redundancies and would like to thank any affected employees for their support during the last six months.”
Blockbuster’s 264 UK stores will remain open during the administration period, whilst a new buyer is sought.
As a result of Blockbuster’s administration any customers with preorders for the Xbox One and PlayStation 4 will now have to seek alternatives. Posting on their Facebook page, Blockbuster informed customers that in order to claim any refunds on Xbox One or PlayStation 4 preorder deposits they would have to write to the company, via snail mail.
At time of writing Blockbuster’s site is still advertising its games rental service, however of course we’d advise against signing up. With the potential of Blockbuster possibly disappearing your choices for renting games are now severely limited.