January 16, 2013 16:15
Blockbuster set to go into administration
Film rental company in trouble
Blockbuster UK has gone into administration.
The film rental company confirmed that administrators Deloitte have taken control of the company and are actively seeking a buyer. With 528 stores in the UK, as many as 4,190 jobs are at risk. ITV News reports that Blockbuster have stated that "increased competition from, internet based providers along with the shift to digital streaming of movies and games" are behind the collapse.
Lee Manning of Deloitte 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."
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."
Blockbuster UK is the second entertainment based company to go into administration this week following the similar fate of HMV yesterday (January 15).
Scroll down to see the original 1980's TV advert Blockbuster ran when they launched in the UK.
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