DVD rental business will trade as normal while administrator looks for buyer.
Blockbuster, the latest high street retailer to go into administration will continue to honour gift cards and credit acquired through its trade-in scheme.
A victim of tough economic times, plus changing technologies and consumer habits, the DVD film and game rental business announced today that it had appointed Deloitte as administrator. Lee Manning of Deloitte said "...we will continue to trade as normal in both retail and rental. During this time gift cards and credit acquired through Blockbuster's trade-in scheme will be honoured towards the purchase of goods."
The end of 2012 and start of 2013 has been a dismal one for the British high street with four major retailers having to call in the administrators.
First Comet in November last year, then camera store Jessops collapsed into administration on 9 January, then HMV this week swiftly followed by Blockbusters announcement today. With the last three retailers up to 10,000 jobs are at risk and almost 1,000 stores could close.
Deloitte the administrators for these firms have so far refused to honour HMV gift cards or refunds. But Manning said that Blockbuster's "core" business was "still profitable".
In a statement he said: ""We are working closely with [Blockbuster UK's] 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.
"...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."
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