Printed from http://www.electronista.com

Blockbuster files for bankruptcy protection in the UK

updated 04:25 pm EST, Wed January 16, 2013

Third High Street chain to do so in seven-day period

Movie rentals company Blockbuster's United Kingdom arm has applied for bankruptcy protection after 24 years of operation. The move takes place in the same one-week period as photography chain Jessops and music retailer HMV headed into administration in the UK, unable to battle online retailers and providers of online and post-based services

Unlike its US counterpart, Blockbuster in the UK does not operate any streaming services, and opened its own online DVD rental service in 2002, according to the BBC. In a crowded movie rental market dominated by Netflix and Amazon-owned Lovefilm, the company has been forced to close over 100 of its stores in recent years, but it still operates 528 and employs 4,190 staff.

Accountancy firm Deloitte will be operating the firm until a buyer can be found. Lee Manning of Deloitte, as well as expressing a hope that the business could be kept running and staff employed while undergoing administration, claimed "The core of the business is still profitable," suggesting it may be attractive as a going concern to the right buyer.

The US operation filed for Chapter 11 bankruptcy in late 2010, facing debts of $1 billion. It was later bought by Dish under auction, and later the brand was used by the company to create the Blockbuster Movie Pass, bundling satellite TV with mailed disc rentals and streaming video.



By Electronista Staff
toggle

Comments

Login Here

Not a member of the MacNN forums? Register now for free.

toggle

Network Headlines

toggle

Most Popular

Sponsor

Recent Reviews

Kenu Airframe Plus

Simple, stylish and effective, the Kenu Airframe + portable car mount is the latest addition to Kenu's lineup. Released earlier this y ...

Plantronics Rig Surround 7.1 headset

Trying to capture the true soundscape of video games can be a daunting task. Looking to surround-sound home theater options, users hav ...

Adesso Compagno X Bluetooth keyboard

The shift from typing on physical keyboards to digital versions on smartphones and tablets hasn't been an easy for many consumers. Fro ...

Sponsor

toggle

Most Commented

 
toggle

Popular News