Video
store latest
victim of
high street
collapse

The failure, in a bleak week for the retail sector, comes after HMV hit the rocks on Monday and brings this week’s retail jobs losses to more than 8,300.

Administrators Deloitte blamed the firm’s trading woes on competition from internet firms and digital streaming of movies and games.

Deloitte stressed that Blockbuster’s core business – which still has two million active members – was profitable and that it would keep all 528 stores open while seeking a buyer.

HMV which entered administration on Monday night left more than 4,000 jobs in doubt, and followed days after camera chain Jessops went into administration, losing 2,000 jobs.

The biggest failure of recent months was the demise of consumer electronics chain Comet, resulting in the loss of 6,900 jobs.

Lee Manning, joint administrator and partner in Deloitte’s restructuring services practice, said: “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.”

Blockbuster will continue to accept gift cards and credit bought through its trade-in scheme for second-hand movies and games, as well as operating its loyalty scheme.

Yorkshire-based private equity firm Endless has confirmed it has expressed an interest in bidding for HMV.

Other private equity firms are also expected to show an interest in the music and video chain, which yesterday saw its Irish division put into receivership. The US division of Blockbuster went bankrupt in 2011 but was rescued by a cable TV company.

Accountancy firm Deloitte has been appointed to take control of assets linked to 16 stores operated by the company in Ireland, which were closed.

City analysts said the recent wave of high street failures had affected companies with a business model based on products made obsolete by digital and internet technology.

When they suddenly faced demands from creditors cutting their losses after a poor Christmas, they were forced to accept they could no longer continue.