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Video rental chain Blockbuster goes into administration

By SWEPRupertH  |  Posted: January 16, 2013

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Video rental chain Blockbuster has gone into administration with more than 4,000 jobs at risk across the UK.

The chain runs four outlets in Swansea, one in Neath and one in Llanelli.

Administrator Deloitte has been hired to find a buyer for the group which it maintains is still profitable.

Blockbuster runs 528 stores across the UK employing 4,190 staff.

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."

The administration of the chain comes less than 24 hours after Deloitte was appointed to find a buyer for troubled entertainment giant HMV.

If HMV and Blockbuster close for good it will, along with the closure of eletrical chain Comet and photographic group Jessops, bring the number of retail jobs lost in the last six weeks to 16,000 across the UK.

Read more from South Wales Evening Post

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  • immigrant1  |  January 18 2013, 1:37PM

    lancelot69 - WH Smith has already started closing stores. Won't be long before they disappear. But it's not the death of the high street. The high street is just changing - just like it's always done. It's probably the death of Swansea city centre though, as no-one seems interested in saving it. Just being filled up with low-quality social housing and problem tenants.

  • immigrant1  |  January 18 2013, 1:34PM

    Blockbuster and HMV sell over-priced ****, which is a big reason that they've failed. Who wants to pay £15 for a CD - not me. Haven't been in an HMV shop for over 10 years. Same with Blockbuster. Both have been run my management that haven't got a clue. They world is changing fast, but they think they can stick with an outdated business model that's almost obsolete. Both companies were in a prime position to be first to market with a download model, but for some reason they didn't bother.

  • hacker_jack  |  January 17 2013, 10:04AM

    HMV and Blockbuster are hardly local high street staples are they? HMV only had stores in out of town developments and major centres whilst Blockbuster was fairly new and itself was the death-siren for dozens of local video hire shops. Neither of them was prepared to move with the time on pricing (HMV still marked most films at 19.99 for Gs sake). Neathboy is correct for once, our town centres should be entertainment and cultural centres, not a line full of soulless shops (yes even local ones)

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  • lancelot69  |  January 16 2013, 9:38PM

    I predict w h smith will be next. Any jobs going at deloitte?

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  • nice_nails  |  January 16 2013, 9:07PM

    HMV ,Blockbuster and Woolworth missed the gravy train that is the internet, Hmv if run correctly would have had a great percentage of the online music business, Blockbuster should have been streaming movies years ago and Woolworth were obviously run by dinosaurs, bad management put paid to these companies. I walked the length of Swansea trying to find a certain new non chart Cd last weekend only to find that Hmv was the only record store I could find did they have this new music ? no, just a load of **** that obviously no-one wanted.

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  • Neathboy234  |  January 16 2013, 4:36PM

    BossHogg i never go in pound shops, if others did the same they would very quickly go bust. The high street is changing and at a faster rate than ever. Soon it will be the internet or out of town shopping, we'll just have to find something new for our towns and citys. Housing would be a good option, especially with the population going up by an extra 10 million by 2025-30

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  • BossHogg  |  January 16 2013, 4:04PM

    We will soon become a nation of Pound shops :(

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  • Neathboy234  |  January 16 2013, 4:00PM

    It was always going to happen. In 30 years time people will be amazed that we use to go shopping for things. As for our town centers they will be places for people to live and entertain themselves. As for those people who want to stop the world and get off, just except that change is inevitable

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  • Hedoken97842  |  January 16 2013, 3:44PM

    HMV and Blockbuster are gone within 2 days of one another! Highstreets are dying slowly but surely, not helped by the councils obsession of charging people to park and charging top rates to those with units which means shopping in any town or city is seldom cost effective due to overheads or an enjoyable experience any more. Pretty soon there wont be any one else to charge. Amazing how computers and the internet are sucking the life out of things and leaving it cold and efficient like 'itself'.

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