High street DVD rental chain Blockbuster is the third major retailer to collapse this year as the company calls in administrators.
Over 4,190 jobs hang in the balance at Blockbusters 528 stores after today’s announcement that the Deloitte has been appointed as administrator.
Lee Manning from Deloitte has highlighted the increased competition the firm has faced from internet based providers as customers switch 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,” Mr Manning stated.
“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 Blockbusters trade-in scheme will be honoured towards the purchase of goods.”
The Uxbridge-based business opened its first store in London in 1989 and now trades from 528 outlets employing 4,190 staff.
The news follows the recent collapse of Jessops and HMV, all three companies faced growing competition from new technologies and online competitors.
Deloitte took control of HMV on Tuesday and said today that Blockbuster’s 528 stores will continue to trade as normal in the meantime.