Last week, Blockbuster UK announced that it had entered administration, with Deloitte appointed as administrator. At the time, we weren’t sure what was going to happen to Blockbuster UK’s 528 stores and more than 4,000 employees, but today we’re getting a better idea. Deloitte has announced that a total of 160 stores will close, with an unknown amount of jobs being eliminated with this shutdown.
160 stores out of 528 doesn’t seem too bad, especially for a company that has been struggling as much as Blockbuster in recent years. It could definitely be worse, but this announcement doesn’t necessarily mean that the other 368 stores are out of the woods. Deloitte says that more closures may come by the time everything is said and done, so many employees are still bracing for the worst this morning.
The ultimate goal here is to turn Blockbuster UK into an attractive deal for potential buyers, and that’s obviously done by shutting down stores that aren’t making a profit as a means of saving money. Deloitte certainly has its work cut out for it, as Blockbuster – once the king of movie and game rentals – has been losing a lot of ground to digital retailers and streaming services like Netflix.
There doesn’t seem to be any word on which stores across the UK will be shutting down, but Deloitte will probably be ready to share that information soon. When Blockbuster announced that it was going into administration last week, it said that it would continue trading as usual, meaning that for the time being, nothing about Blockbuster’s business will be changing from a consumer perspective. Keep it here at SlashGear and we’ll keep you updated on Blockbuster UK’s bout with bankruptcy.
[via GamesIndustry International]