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Blockbuster, the video rental chain, has already practically disappeared in the U.S. and now could do the same in the U.K. The firm is going into administration, with accountancy firm Deloitte now being tasked to find a buyer.
The BBC reports that the company employs 4,190 and has 528 stores in the U.K.
Blockbuster is currently owned by Dish Network after filing for bankruptcy in the U.S. in 2011. The company took a hit as brands like iTunes and Netflix (as well as Lovefilm in the U.K.) made it easier to rent movies and DVDs online. Back in September 2011, Dish launched its own streaming service using the Blockbuster brand. Blockbuster also has an online rental system in the U.K.
“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,” Lee Manning of Deloitte said.
“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.”
This is just the latest chain to enter administration in the U.K. Media retailer HMV also went into administration earlier this week, notes The Guardian. That move sparked anger across the country as millions of pounds worth of gift cards purchased over the Christmas holiday suddenly became useless.
Jessops, which sells cameras, also entered administration and closed all of its stores just days later earlier this month, notes the BBC.