UPDATE: Blockbuster to close 164 more UK stores
UPDATE
Administrator Deloitte has confirmed that 164 further Blockbuster outlets will close in the coming weeks, as it attempts to slim down the chain sufficiently to find a buyer.
A spokesman said: 'We have continued to review the performance of individual stores since our appointment a month ago and have concluded that further closures are necessary in order to restructure the company for sale.'
The remaining stores will continue to trade while Deloitte pursues negotiations with bidders.
Posted 19.01.13
Administrators have confirmed today that Blockbuster will close 129 more stores in the UK, with 760 staff facing redundancy.
The DVD rental chain has already given 31 stores notice of closure. The chain has 528 stores and employs 4190 staff across the UK.
Deloitte, the accountancy firm running the chain, says the closures will not take place immediately. It has kept the chain trading while it tries to find a buyer.
Joint administrator Lee Manning told the BBC: "Having reviewed the portfolio with management, the store closure plan is an inevitable consequence of having to restructure the company to a profitable core which is capable of being sold."
Published 16.01.13
In the last hour Sky News has broken the news that DVD rental chain Blockbuster has become the latest high street name to call in administrators, following the recent collapses of camera retailer Jessops and entertainment company HMV.
Sky's City Editor says that the company, which has 528 outlets in the UK and employs 4190 staff, faced increasing competition from online DVD rentals and streaming services.
Lee Manning of Deloitte, who has been appointed joint administrator says that '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.'
Blockbuster's UK operation is one of 17 countries where the brand is in use, and at one stage the company had 4000 stores in the US, and 2500 more globally. The US operation has been cut back to around 1000 outlets, following the company's 2010 filing for Chapter 11 protection with debts of $900m.
It was bought by US satellite broadcaster Dish Network in 2011, after a failed bid by South Korean company SK Telecom, and has for a long time been running online operations alongside its 'bricks and mortar' presence, but seems to have fallen victim to other widely available online offerings.
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Comments
Good job they have been bought out now.
How did Amazon "abuse" the VAT rules?
They took commercial advantage of a government imposed rule that no VAT would be charged on imports below a certain price. This was open to any other company to do the same thing.
Blockbuster from memory was always more expensive than the other 'shops' in our mainstreet who did the same business in hiring out movies.
We used a shop across the road from our local Blockbuster who did a two night hire for around £1.50 whereas Blockbuster were charging £3.75 for new movies for a ONE night hire ?
Most people where I live didn't use Blackbuster because of this.
Blinkbox and itunes generally have the majority of films day and date with Blockbuster or traditional stores however Blockbuster have a two week window with 6 of the studios. Netflix and Love Film Instant have no recent films indeed SKY's new Now TV together with the aforementioned only have 7 of the Top 100 box office movies between them. itunes and blinkbox generally charge between 50p and £1 on HD versions whereas traditional stores generally charge the same for BLURAY as DVD. Hope this helps.
Amazon is King because the media made it King. Name me any other online retailer of music, DVD and books that get a mention in the media when reporting or writing or in a large number of cases reviewing. Amazon take billions each year from the UK consumer and pay no tax on profits. Amazon abused the VAT rule for purchases under £15 depriving the treasury even more tax whilst being 20% cheaper that the High Street. They of course weren't the only online retailer involved in this practice.
Whilst I agree with your sentiment of Blockbuster destroying the independent, it was the studios that drove this with a short sighted business plan. With regard to Love Film, they are only a good service if you are a casual film watcher, if you want to see the latest films then Love Film isn't any good. You give a list, they select from that list and post two discs from your list, you have little or no control what turns up. They only have an average of 12 of the Top 50 films at the same time as traditional rental stores. Streaming alternatives such as Netflix Love Film Instant or Sky also fall short, Netflix and Love Film currently having only 1 of the Top 100 box office films of 2012 and Sky's new Now TV only 7 whilst traditional stores have 70.
There is itunes but you pay £4.49 for HD compared to £2.50 - £3 in a traditional outlet.
People have long forgotten how BlockBuster destroyed the independent video rental shops on the high street. During the late eighties, almost every block had its own rental store. Then came BlockBuster who'd initially lowered their prices whilst offering a greater range of videos. Within three years most of the local independents closed and BlockBuster then simply raised it's prices whilst offering a reduced service. The money came rolling in like no tomorrow!
The same business approach was employed by HMV/Virgin to destroy local record shops.
Until the late nineties ....
ScreenSelect, Video Island offererd a better choice where you can rent DVDs by post with no penalties for late returns, all from the comfort of your armchair. Who want's journey to BlockBuster in the pouring rain on a Friday evening?
I, for one, immediately joined ScreenSelect (now LoveFilm, which I'm still a member BTW) owing to the ease and comfort of selecting/renting a film or two from my own armchair.
BlockBuster good riddance I say, as like with any empire, the decline is inevitable.
I *do* feel sorry for the valued staff at BlockBusters, HMV but senior management should of adapted to the future years ago.
I envisage in ten years time the only physical shops remaining will be for clothes, shoes, food and take-aways. Anything else will be simply purchased by Amazon.
Amazon is king.
Well,ironically Blockbuster's online rental did/does get some films way before Lovefilm.Another irony is that several studios have recently restricted dvd/blu ray releases exclusively to high street shops for (I think) 6 months before you can rent them from Lovefilm.I don't know what's going to happen now that the biggest rental chain has gone bust,but I would think a fair few high street sites might be worth picking up by independents or ex-Blockbuster staff as I doubt you are alone.However,digital media mostly does not need a physical presence on the high street and I imagine video shops will only be viable in areas where the rent is low and the and internet connections are patchy.
I think Acetrax and iTunes have current releases when DVDs are released. However I've never used Acetrax and I only rarely rent a movie from iTunes
Hopefully someone can educate me on this one.
See, I'm annoyed about this because my nearest branch is only a short walk away and my lifestyle is such that I am pretty much able to rent what I want when I want and see the latest films (if I have not already seen them at the cinema).
Now, peopel are saying that they are in this situation due to the prevalence of online services but...can anyone tell me which online service has the very latest releases (Netflix does not, I can't speak for LoveFilm)?! And even the TV channels have to wait to get films until they are released on BluRay and DVD anyway, and that's at teh very earliest...
So, have I missed a service?