Blockbuster Closing All Stores: 2000 Job Losses Across 264 Stores
Having entered administration for the second time, Blockbuster has given up the fight and will close all of their 264 outlets in the UK. According to unconfirmed reports, the stores will be closed before the 20th of December.
The news that Blockbuster had re-entered administration once more surfaced in October, so this latest report shouldn’t come as too much of a surprise. The retailer was once the number one chain in video and DVD rental, but the market for rentals dwindled as online alternatives like iTunes and Netflix modernised the business model and inevitably Blockbuster lost their market share. Last month the administrators cited “poor trading” as the main reason behind the firm’s return to administration.
Closing Blockbuster locations was part of the administrators plan when they took charge last month. Initially 72 stores were marked for closure, but we’ve now discovered that Blockbuster is closing all stores before the end of 2013. A Blockbuster insider confirmed that operations manager Dave Potter gave the news to store managers over the phone last week, but there has not been an official word from the rental chain.
It would make sense for the firm to keep tight lipped about the closure on the run up to Christmas, as this is traditionally a very popular time for most retailers and outlets. But the writing is on the wall for Blockbuster whose website shows that the firm has stopped their “Blockbuster by Post” service and an additional note says that they will no longer honour pre-orders. The section is under FAQ and it states, “Unfortunately the Company is not in a position to full fill any pre-orders.”
If Blockbuster has gone bust then it will follow other well-known high-street brands like Woolworths and Comet, both of which could also point to online retail as a main reason for their demise.