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Dublin: 8 °C Tuesday 21 May, 2013

Blockbuster enters administration

The UK entertainment store employs 4,190 staff.

Image: Dave Thompson/PA Archive/Press Association Images

BRITISH RETAILER BLOCKBUSTER has entered administration, putting over 4,000 jobs in potential jeopardy.

Three partners at Deloitte have been appointed joint administrators to the DVD and video games rental company.

Headquarted in Uxbridge, the firm has 528 stores and employs 4,190 people.

For now, the business will continue trading as normal.

“In recent years Blockbuster has faced increased competition from, internet based providers along with the shift to digital streaming of movies and games,” administrator Lee Manning said in a statement.

“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.

“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.”

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Comments (39 Comments)

  • It’s sad to see all the jobs been lost in this industry but with DVD rental so high and it been so easy to watch films on line, it was only a matter of time.

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  • Deloitte must be making a killing with all these big companies going bust

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  • I stopped downloading last year now the kids love going to xtra vision every friday for dvd and popcorn … cheap as chips hope they keep going .

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    • A thousand thumbs up!

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    • Popcorn 16/01/13 #

      That’s the key to it.

      Traditional “bricks” retailers need to concentrate on the experience of the customer that can not be replicated on line.

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    • ‘The experience’ ??? What experience are you talking about? You mean driving to the store trying to find something to watch, usually getting something you have no clue about and will probably be s***e, xtravision carry an increasingly narrower range to chose from, and the you forget to bring it back for the next couple of days, costs a fortune. Much as I am concerned by the loss of jobs the business model was doomed several years ago as was HMV’s and others. They are way behind the times.

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    • So, William, how exactly is xtravision’s business model at fault because you have s**t choice in movies and can’t be bothered to bring them back on time?

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  • xtravision have posted on facebook and twitter that its business as usual and that they have had no afiliation with blockbuster since 2009 so heres hoping!

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  • @john, no, xtravision hasn’t been owned by blockbusters since 2009. would like to say my job is safe but Im just not sure. Our store does well, we were extremely busy last weekend, but i can’t imagine all stores are the same.

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  • Hope Xtra vision is in better shape. Their popcorn is yummy.

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  • I wonder if xtra vision will be next?

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    • Well they entered administration in late 2011/early 2012….and came out of it again but I would say things aren’t too good. They never really adapted to the market and to be honest I think the day of the electronic entertainment retailer is fast coming to an end. I’ll miss them though, I like being able to browse around the shop and see the physical copy of what I might buy but they just cannot compete really with online retailers on price.

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  • Is it only a matter of time for Xtra Vision?

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    • Fozz 16/01/13 #

      For sure.
      A few years back only the nerdy types downloaded movies…now any body can do it with services like NetFlix etc.
      The writing has been on the wall for some time now for these stores so this should come as no surprise to anyone.
      And even if Xtravision had moved into the digital space offering a NetFlix type service, this would still not save the jobs of the store workers.

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  • The second in two days. It is a fact of life now. With the downloading of music from internet what chance have they got.

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  • I notice in the statement that they are honouring gift cards/vouchers as they are profitable. HMV chief exec made a similar pronouncement on Sky News last night – however that co are behaving in a dishonourable/shameful manner re vouchers.

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  • Do they have any presence in Ireland?

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  • I’ll have p please bob

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  • The companies like HMV and xtra vision are businesses and should have known they would have to adapt to online trends, nothing would have stopped them setting up their own markets like iTunes or netflix but unfortunately the boat has sailed for them now. They sat idle for too long and looks like only a matter of time until there gone.

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  • Barry 16/01/13 #

    This somehow seems fitting.

    The Onion did this news story a few years back
    ” Blockbuster Offers Glimpse Of Movie Renting Past ”

    http://www.youtube.com/watch?v=3TrPwOrf4sM

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  • I rented a DVD once from blockbuster. Never again.
    Price of rental was extortionate.
    The cause of their own demise.
    Good riddance.

    A shame for the employees.

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  • Surprise, surprise! I don’t think the government or indeed most businnesses realise the effect that Web Stores are going to have on the high street.

    ALL retail, wholesale, distribution and merchant businesses without an integrated Web Store will be out of business in between 5 to 10 years, in many cases sooner. No provision is being made by TDs in Ireland or MPs in the UK for this dramatic change. Surprise, surprise!

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    • Barry 16/01/13 #

      Why are you depending on the government?

      Its up to a business to change as the market change, the very fact an awful lot of Irish company’s don’t have even a website shows they’ve ignored the whole “internet thing”. Very foolish indeed,

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    • Obviously I beleive it’s up to businesses to get their act together but government action is also very important. Sky high rates and upward only rent reviews on high street premises are a large part of why they have become unprofitable. The government also screw the motorist as do the car parks. The hight streets will be ghost towns with nothing but coffee chains and McDonalds selling burgers if some action isn’t taken. The famous Irish pubs are knackered for a different set of reasons. As a business man said in the UK recently, I don’t pay high rates on my web depot.

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    • Popcorn 16/01/13 #

      Need I remind you that the web is a global phenomenon unconcerned with what a few politicians off the coast of Europe get up to.

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    • I’m not suggesting the TDs can stop the inevitable but they can plan for it.

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    • Eddie 17/01/13 #

      Good point. Buying the cheapest product is natural. Buying online is common sense. Bear in mind though that buying online in Ireland implies you are not in any way shape or form supporting the Irish economy. The online firms we are supporting are paying no taxes whatsoever to the Irish state. They are creating no employment in the Irish state. In the long run and in the bigger scheme of things the Irish economy is going to suffer very badly. Local councils are going to encounter severe problems going forward as they are not going to be getting rates from all these collapsed retailers. Ultimately we the Irish tax payer is going to have to come up with the shortfalls. Obtaining the cheapest product online may be beneficial short term but in the long term we are going to have to pay in the form of more taxation as a consequence of the demise of our domestic retail economy. Buying local or Irish does no small wonders.

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    • Eddie, web based businessess like eBay employ thousands of people in Ireland! My concern is that the high streets will be destroyed and town centres like ghost towns.

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  • Barry 16/01/13 #

    I’m aware this story isn’t about Xtravision but I will say that since around 2005 I’ve been saying Xtravision will be gone and buried by 2015, with the rise of Netflix and services like Appletv and even online physical video rental like screenclick.com I think the writing is on the wall.

    Sure not everyone has broadband in Ireland but the problem is where people do have broadband are also the same places where Xtravision operates (large towns and citys), so broadband availability will eventually kill them off.

    For any employee’s in Xtravision I would say get out now while the going is good

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  • I thought they wer well gone.. Havint seen a blockbusters in years!

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  • Gerard 16/01/13 #

    Don’t they also own Extra Vision? The power of the Internet can kill off any high street retailer very sad. For i once used to buy 3 CDs every week for years till broadband came about now just like few maybe most of us i used to get them for free now i buy on apple store as it hurts the artist but regardless it’s the lost of jobs is devastating for all those that work in the high streets

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