Blockbuster back in administration

Blockbuster is back in administration, with a threat to around 2,000 jobs.
Blockbuster is back in administration, with a threat to around 2,000 jobs.

Prescot’s high street has suffered another huge blow after video and rental chain Blockbuster went into administration for the second time.

The troubled company, which has a store on Church Street in Prescot, called in administrators once again following months of poor sales and the failure to develop its online presence.

Blockbuster has said none of its stores are in danger of closure and will all carry on trading while a new buyer is sought, and there is currently no suggestions jobs will be lost in the borough.

However, if a buyer cannot be found around 2000 staff at the company face an uncertain future.

Customers who have pre-ordered the new Xbox One or PlayStation4 consoles were informed through the company’s social media that they would be receiving full refunds on Tuesday, while customers who have ordered games in store were advised to speak to staff and online games can be refunded through the head office in Uxbridge.

Blockbuster initially collapsed in January after struggling to keep up with online retailers such as Lovefilm and Netflix, but was sold to Gordon Brothers Europe in March.

In a statement, the private equity firm said it had tried to turn around the loss-making company by investing in marketing, restructuring the business and negotiating with the landlords of its branches.

However, an attempt to create a new digital platform for Blockbuster had fallen through after the firm’s owners were unable to secure a licensing deal with its American parent company.

Blockbuster has confirmed there will be 32 redundancies at its headquarters in the UK and has also halved the number of employees since entering administration for the first time.

The rental chain is not the only high street name to have come under pressure from online competitors, with camera chain Jessops also going into administration recently and music and entertainment giant HMV closing more than 60 of its stores, including one in the Grand Arcade shopping centre, after losing business to web-based rivals such as Amazon and Play.