It's proving to be a very bad week for brick-and-mortars retail. Electronics rental business Blockbuster UK will shortly enter administration.
150 UK stores will reportedly close over the next six months, and "significant" quantities of stock are hanging in the balance. The chain currently employs around 4,190 staff and operates 528 UK stores in total.
HMV administrator Deloitte has been appointed as administrator, according to Sky News. The latter's Lee Manning pegged the blame for Blockbuster's collapse on, surprise surprise, stiff competition from online entertainment providers.
"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," he said.
"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."
More as we get it.
26 comments so far...
PonderingWalrus on 16 Jan '13 said:
Goodbye high street video games retail. You will be missed.
CunningSmile on 16 Jan '13 said:
Are they still going? I thought they went bust months ago...maybe it's the fact everytime I go in there the shelves are bare and everything looks like it's being boxed up that gives it the general feel of "closed for business"
Maverick_McCool on 16 Jan '13 said:
Odd , my local Blockbuster seems to do really well , friendly staff that seem to be into the products they sell be it films or games (they put Game and Gamestation to shame to be honest) and I've got some excellent deals from them in the past. Will be gutted to see them go.
scotty on 16 Jan '13 said:
My local Blockbusters sounds much like yours McCool, I'll be sad if it disappears down here.. they're a good bunch and seem to always be busy. Hopefully they can shake it up and keep the profitable stores.
vadersmyfather on 16 Jan '13 said:
My local Blockbusters is pretty horrible. Stuff all over the place and clearly not had a face lift in years. It's depressing and prehistoric. With the advent of Lovefilm, Netflix, Sky Box Office etc you don't have to go out in the cold, drive to the store, trawl through dvds and then rush to take it back a few days later, anymore.
CunningSmile on 16 Jan '13 said:
I think you've pretty much summed up the exact reason they've gone bust.
ipsofacto on 16 Jan '13 said:
South Park already told me the days of Blockbusters was over
msbhvn on 16 Jan '13 said:
I blame the Tories sticking the financial knife into everyone (except their millionaire friends, of course) for all this.
I was also suprised that Blockbuster were still going as I haven't set foot in one since the one in my village shut down about ten years ago. Having to pay bus fare to get to the next nearest, plus the overpriced rental fee and then bus fare again to return it, meant it was cheaper to buy films from Amazon than to rent from Blockbuster.
CunningSmile on 16 Jan '13 said:
I blame optimism. The reason everyone has gone at once is they all belong to outdated business models that haven't moved with the times but were limping along in the hopes that Christmas would bring a boost. Except we all went to LoveFilm, Netflix and Amazon at Christmas rather than Blockbuster and HMV and so that Christmas miracle never happened Tiny Tim.
FishyGinger on 16 Jan '13 said:
Not sure how you brought the tories into it but I've not been in one for at least a decade, more like 16-17 years for any rental place. Seemed pointless.
msbhvn on 16 Jan '13 said:
Love 'em or hate 'em, they're the ones in charge of the economy right now and they're doing a terrible job. They can only blame the previous government (who apparently were responsible for a worldwide crisis) for so long.
Johnbhoy69 on 16 Jan '13 said:
Ive been saying this to my friend for while but the High street is going the way of the dinosaurs. In a few years no one will buy anything from actual shops anymore. People will continue to buy games, Movies, clothes, food etc, manage their money, Hell even communicate with people solely through the internet Look at most supermarkets with their self service Tills and online shopping delivered to your door, slowly phasing out the need for manned Tills and with the next generation of games consoles phasing out the pre-owned markets...Multiple job sectors are going to be completely extinct. In The town where I live with Game closed and HMV following suit, All we have now is Computer Entertainment Exchange with wont survive too long in the next generation console market.
stryder84 on 16 Jan '13 said:
You cannot blame the government for everything ok my brother works in government departments and he has worked for both labour and the tories when i asked him how is that possible his reply was "the people running the country dont change only those in charge" and as for the economic fudge up basically the banks lose everything then say to everyone else "you know what screw you we want money"
so back up your arguement with VALID reasons and dont jump on the bandwagon everyone else seems to be on and just remember
This is the truth so deal with it
msbhvn on 16 Jan '13 said:
The government are the ones making the decisions that take money out of people's pockets. People who have less money are reluctant to spend it. When people aren't spending money, shops go out of business.
But I agree that the banks caused the financial crisis and haven't lifted a finger to fix the mess they've caused.
dx.nick.p on 16 Jan '13 said:
I don't blame the Government. I blame myself, you and every other member of the public - and the folk running the companies. They set the prices, and we look for the best deal, which 99% of the time is on-line. If we (as a nation) really cared about these stores, we would continue to use them. Instead we look to save a few pounds here and there - not that it's a bad thing.
Be honest. If the Government did allow you to keep more of your cash, would you spend it buying a game for £45 in HMV, or would you pay £35 on-line?
It is sad to see some of these places closing - especially when many of the members of staff who are losing their jobs are hard working and proud-to-be-working individuals.
Give it 5 or 10 years, and I think that the high street will only have phone shops, cafes, mini-supermarkets and specialist stores. HMV was a bit of a 'sell anything that's cool' store. Blockbuster was unfortunately, very 20th century. I can't remember the last time I went to the high street to buy a game, when it's cheaper and easier on-line or in a supermarket.
Buying a game or CD isn't like buying a TV or a laptop. If I'm spending hundreds or thousands of pounds on a long term investment, I want to see it. I want to try it before I buy it. I actually want to experience it and have someone tell me I'm making the right choice.
If I want a game, CD or DVD, I know what I want. I can read a synopsis on-line. I can read reviews on-line and I can watch clips on-line. I have no desire to leave the house. Unfortunately, that's just the way of the world now. We all want everything cheaper and delivered.
ang3l423 on 17 Jan '13 said:
I've read a lot of comments on this issue, and some people hate the stores, prices ect, but at the end of the day it's the people who are losing their jobs we have to think about. It's horrible to see people wishing your job loss. Woolworths, HMV, Jessops, Comet, Blockbuster, a lot of people may have hated these companies and are glad to see the back of them, but what about the hard-working members of staff who are now out of a job? Not everyone thinks about this when they're slating these stores.
FishyGinger on 17 Jan '13 said:
The high street will not die. Clothes shops won't go all online that would be mad. Same with coffee shops, newsagents, probably phone stores and hopefully the odd electronics shop. Who in their right mind would buy a fridge online.
richwk on 17 Jan '13 said:
Fnar.
SidTheSloth on 17 Jan '13 said:
Can't see clothes shops going anywhere soon to be honest, but electronics shops must certainly be in trouble. Hands up how many people have visited somewhere like Curry's to see the stuff and then gone on to order the same thing cheaper on-line? I know i've done it/do it...
Do they price match on t'internet btw nowadays? Been so long since i bought anything over there... Brings me on to a good point, the retail sector is struggling around the world a bit it's true, but a lot of the european countries that prevent huge supermarket chains moving in etc aren't facing anywhere near the issues the UK high street is. Haven't got time to go into details but can't help feeling the UK has sold its High Street soul for 24 hour convenience. Whenever i'm back in the UK & in a Tesco's i'm always amazed/impressed/scared/frightened by the depth, breadth and pricing. Cunning posted you the awesome stat the other day of just how much of the UK spend goes directly to Tescos and suddenly you don't have to look very far for some basic reasons as to where it may have started to go wrong.
Clanger67 on 17 Jan '13 said:
I bought my last washing machine online if that counts.As to the fact it was cheaper than anywhere else it was free delivery and they took the old one away at the same time.Think i would do the same with my fridge /freezer given it is six foot tall,lol.
FishyGinger on 17 Jan '13 said:
Washing machine, fridge and freezer we bought in store and they deliver it. I like to see what I'm getting. If these places die you're taking it on trust and I know thats the same with anything online but certain things you need to see first whether you like them or not.
Clanger67 on 17 Jan '13 said:
I saw mine before i got it there were photos,dimensions everyhting on the website.Plus we don't all have or want the privelage of living in or on the outskirts of a massive city.The only thing that i would be bothered about seeing in the flesh so to speak would be a new telly.
As to Blockbuster,bad news as has been mentioned all the staff in my local one were really friendly.Also two of the guys who worked there had 360's and certainly knew their stuff about games,new releases.Sad times.
Johnbhoy69 on 17 Jan '13 said:
Maybe I should have went into more detail on this...I do think the High street is going to hell but maybe not completely. Places like coffee shops and clothes shops will survive...just about. Nothing will beat trying clothes on for yourself Though admittedly I do buy most of my clothes online especially shoes/trainers.
As for things like TVs and other electronics, someone here mentioned that they prefer to see the product and test it out which is fair enough but they also commented about reading reviews of Games and DVDs online. This can work for larger electronic goods too though, I bought my TV from Amazon based on reviews and its been working perfectly for 5 years now. Reviews are just another way people can communicate with people through the internet...we are having this debate through the internet...though thankfully it hasn't descended into arguments about race,sex or religion like on youtube lol.
All im saying is the Highstreet is changing, Sales Assistant type jobs are becoming fewer and fewer as consumers are relying now more on the internet. A sales assistant isnt going to tell you all the problems of a TV, Fridge or Blu-Ray player that looks great in store as competition is fierce and companies need to make sales where they can. Online reviews are the best way to get an all round opinion of a product as if someone thinks the product is crap they sure as hell make you aware of that.
SadCheesecake on 18 Jan '13 said:
Recently I bought an iPod cover from HMV that immediately broke, and I bought the first Black Ops from Blockbuster and it didn't work. I would have taken both back for a refund or something but now it feels like that would be kicking them both whilst they're down. I always buy the latest games at HMV and old ones second hand at Blockbuster, soon it will only be Amazon. I like Amazon but I like walking down the street and feeling like I'm getting a bit of exercise before I glue myself to the sofa and play the latest multiplayer for 100 hours straight.
Sandbwoy on 18 Jan '13 said:
Christ, we'll have no shops left at all in a few more years if it carries on like this!
PonderingWalrus on 19 Jan '13 said:
I don't know about everywhere else but my local HMV is not accepting no returns without exception so you might not be able to take your iPod case back even if you wanted to.