Wed, 16 Jan 2013 | ADMINISTRATION
Video and games rental company Blockbuster has joined the ranks of established high street names and entered administration.
We've already seen Jessops and HMV appoint administrators this year, while Comet finally bit the bullet at the end of 2012. Now Blockbuster has joined that group, having appointed Deloitte to handle the administration.
It appears that Blockbuster was hit by similar problems to HMV in that internet-based companies were able to offer similar services for cheaper. Lovefilm and Netflix allow users to pay a low monthly fee in order to stream films over the internet or have them delivered to their house, making a physical trip to a Blockbuster store seem like an expensive and time-consuming alternative.
Joint administrator Lee Manning commented on the situation: “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.”
He added: “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 company has its headquarters in Uxbridge, but has a total of 528 stores across the UK and employs around 4,190 staff.
This is a unique opportunity to acquire two well-established B2B companies operating across multiple sectors throughout the UK, boasting strong client relationships and secure contracted revenues poised for further expansion.
LEASEHOLD
This is a unique opportunity to acquire a prominent company in a specialist sector with a high barrier to entry, offering integration potential and a cash-generative model with repeat revenue.
This business presents an enticing opportunity with established relationships with blue-chip organisations globally, a strong client retention rate, and the potential for relocation.
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