Blockbuster latest store to call in administrators

Blockbuster on Central Drive in Morecambe.
Blockbuster on Central Drive in Morecambe.

Blockbuster are the latest high street chain to go in to administration.

The DVD and video games rental company has a store on Central Drive in Morecambe and employs 4,190 people nationwide in 528 outlets.

Deloitte has been called in as administrators, as it was with high street music giants HMV on Monday, and cited the move to online rental and streaming as a reason for the firm’s problems.

Lee Manning, joint administrator and partner in Deloitte’s Restructuring Services practice, said: “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.

“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.”