Blockbuster looks set to become the latest high street retail casualty. The DVD rental chain has called in administrators Deloitte putting more than 4,000 jobs at risk across 528 stores across the country. Deloitte will now take over running the rental chain while it searches for a buyer.
Blockbuster's business model has been severely hurt in recent years, due to the rise of digital rental services such as Lovefilm and Netflix. Lee Manning, a partner in Deloitte, outlined Blockbuster's faltering position in the film rental market, saying: "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," he said. "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 busness as a going concern."
The bad news for Blockbuster comes just a day after HMV also appointed Deloitte as administrators for its business. It's been a rather grim couple of months for UK retail, with both Jessops and Comet folding within the last month.