Blockbuster calls in administrators in wake of internet rivals and digital streaming

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Administrators have been appointed at the DVD and video games rental company, Blockbuster.

Lee Manning, Matthew David Smith and Neville Kahn, partners at Deloitte, the business advisory firm, have been appointed joint administrators to Blockbuster Entertainment and Blockbuster GB.

The company is headquartered in Uxbridge, with 528 stores across the UK employing 4,190 staff.

Manning, joint administrator and partner in Deloitte’s restructuring services practice, said: “In recent years Blockbuster has faced increased competition from internet based providers along with the shift to digital streaming of movies and games.

“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.

“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.”