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Blockbuster enters administration as high street woe continues

Blockbuster is the latest high street firm to enter administration, with the DVD and game rental chain’s financial collapse leaving up to 4,200 jobs on the chopping block as its 528 stores face foreclosure.

The British arm of the erstwhile American entertainment giant has appointed Deloitte to take over its fiscal affairs. The hope is that a buyer can be found to help secure the firm's future - in the US, Blockbuster was sold to Dish Network in 2011 having filed for bankruptcy in 2010. Despite a raft of store closures, the brand's physical presence was preserved.

“In recent years Blockbuster has faced increased competition from Internet based providers along with the shift to digital streaming of movies and games,” explained Deloitte’s joint administrator, Lee Manning.

“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 accounting firm is also currently employed by fellow beleaguered high street chain HMV and lorded over the recent downfall of Comet. Unlike both the aforementioned companies, Blockbuster will still honour gift vouchers as it attempts to find its feet.

“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,” Manning noted.

Image credit: Flickr (gceyre)