|Blockbuster UK enters administration, core business|
|Posted: 16.01.2013 15:24 by Simon Priest||Comments: 1|
Another blow to the British retail scene as Blockbuster UK has now entered administration, following on from HMV. Administrators are "working closely with suppliers and employees".
They claim that Blockbuster's core business is "still profitable" and it will "continue to trade as normal" in both retail and rental. Buyers are being sought for all or segments of the company.
Thankfully - and possibly learning from the furore with HMV - Blockbuster will honour all gift cards and credit acquired through their trade-in scheme.
"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," said Lee Manning of Deloitte.
“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.”
HMV has been at the center of much anger after they announced all gift cards were 'worthless' and wouldn't be honoured. The controversy comes from the retailer continuing to sell the gift cards despite seeking legal advice in December about what would happen if they refused to honour them; nothing, apparently - they got 'free money'.
Recently Play.com decided to shutter their direct retail business in favour of its marketplace, which means insteading of stocking products for consumers (that's us!) they now provide a marketplace for merchants to peddle their wares.