Rental chain Blockbuster has become the latest UK high street store to go into administration, amid growing pressure from online rivals such as LoveFilm and Netflix.
The company formed in March 1989 and currently has 528 stores employing 4,190 staff.
Administrators Deloitte will continue to honor gift cards and will keep the stores trading in the hope of finding a buyer.
The firm will keep trading while the administrators try to find a buyer.
In a statement, Deloitte said: “In recent years Blockbuster has faced increased competition from, internet based providers along with the shift to digital streaming of movies and games.
2We 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.”
The UK Blockbuster company is a legally separate entitiy to its US namesake Blockbuster LLC, which filed for bankruptcy in 2010 and was bought by satellite television provider Dish Network in 2011 for $233m.
Blockbuster is the second business in 48 hours to go under after HMV did the same this week. Camera-seller Jessops went into administration earlier in the month, and – unusually – all of its branches closed shortly afterwards. Electricals chain Comet collapsed before Christmas.
To see how far media technology has come, watch one of the company’s first UK commercials here:
