In less than a week, three major retailers have gone into administration – HMV, Jessops and now Blockbuster. Together, these retailers have nearly 1000 stores in the UK and employ 10,330 staff.
Britain is now set to have a record number of store closures this month, even more than the 807 closures that occurred when Woolworths went into administration in 2009.
Blockbuster’s administrators, Deloitte, has said it has had three expressions of interest in the business already. Other mumblings are suggesting that supermarket chain Tesco may bid on the Blockbuster sites and use them as convenience stores.
Lee Manning (partner at Deloitte) has said that 528 Blockbuster stores will stay open while administrators try to secure a bidder to save the company.
“We want to preserve a viable core that has not be damaged in any way.” He added.
The company opened its first store in 1989 and currently have around 2 million rental customers. Sadly out of those 2 million, only 35,000 were transferred across to the online business. Like many retailers, Blockbuster struggled to compete with online businesses and failed to adapt to their consumers’ changing habits.
If you want to find out more about insolvency and how it could affect your business, it may be worth speaking to an accountant. For more information, please see our Insolvency page.
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