Blockbuster becomes latest firm to slip into administration

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DVD chain Blockbuster, which has a store in Bromsgrove, has appointed administrators, it has been announced.

Bosses from the UK arm of the business confirmed today (Wednesday) it had appointed Deloitte to take control of the company, putting at risk 528 stores including the one in the town centre. Around 4,190 jobs could be lost if the business can not be saved.

Lee Manning from Deloitte said: "In recent years Blockbuster has faced increased competition from Internet-based providers along with the shift 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.

"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."

It comes just a week after Jessops fell into administration, subsequently closing just two days after on Friday (January 11).

On Monday (January 14), music chain HMV also announced financial difficulties had led to it calling into administrators.

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