Blockbuster job losses hit 2,300 as 164 more stores close

Blockbuster job losses hit 2,300 as 164 more stores close

The latest cull brings total store closures to 324 and job losses to 2,300 – more than half the company’s 4,190-strong workforce.

Deloitte, which was appointed as administrator to the embattled chain just days after music giant HMV collapsed, said it will continue trade at the remaining stores while it negotiates with prospective buyers.

Lee Manning, joint administrator, 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.”

Mr Manning, who described his role as administrator as “fighting in the trenches”, while speaking to the Telegraph this month, said Deloitte was in discussions with a number of potential bidders for all or part of the business.

Like many retailers, Blockbuster has struggled to keep up with online competition and failed to adapt quickly enough to changing consumer habits.

The devastating impact of the internet on Britain’s high street had already been laid bare with the demise of camera chain Jessops and electricals group Comet, which also cited competition from online players as a major reason for their downfall.

In recent years sales slumped dramatically, with the company moving from a £1.7m profit in 2010 to a £8.4m loss in 2011 and a £11.2m loss last year.

Finance News – Business news from the UK and world

Leave a Reply

Your email address will not be published. Required fields are marked *