High Street Administration Woes - Blockbuster enters Administration.

[fgwrich]

BBC News: Blockbuster goes into administration

DVD rental firm Blockbuster has become the latest UK High Street firm to go into administration after hitting hard times. The chain has 528 stores employing 4,190 staff.

Deloitte, the accountancy firm that will now take over the day-to-day running of the firm, said Blockbuster had been affected by competition from internet-based film services.

The stores will keep trading while the administrators try to find a buyer.

Blockbuster follows hard on the heels of music and DVD chain HMV, which formally went into administration earlier this week. It is not yet known what will happen to HMV's branches and 4,500 staff.

Camera-seller Jessops went into administration earlier in the month, and - unusually - all of its branches closed shortly afterwards.

Electricals chain Comet collapsed before Christmas.

"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," said Lee Manning from Deloitte's Restructuring Services practice.

"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."

http://www.bbc.co.uk/news/business-21047652

So we're into the 3rd week of 2013 and already the recession has claimed it's 3rd biggest company already. No surprise really with Blockbuster though unfortunately.

 

[Johnuk123]

Not a real shock to be honest, I can't understand why anybody would need a place like Blockbusters.

 

[tbtc]

Amazing that they made it into 2013 really.

 

[Xenophon PCDGS]

Has there been a major change over to internet-based businesses of those former customers of this company ? This seems to be a common denominator of such business failures in recent times.

There are towns throughout the land with empty shops on their High Streets and matters such as this will serve only to make matters worse.

 

[radamfi]

Has there been a major change over to internet-based businesses of those former customers of this company ?

Naturally. Instead of renting DVDs from the video shop, many people are renting DVDs by post, buying DVDs online or at the supermarket, watching films on Sky Box Office, or using one of the online streaming services such as Lovefilm or Netflix.

 

[Darandio]

Naturally. Instead of renting DVDs from the video shop, many people are renting DVDs by post

What is more surprising though is that Blockbuster pioneered this in the UK I believe.

 

[michael769]

What is more surprising though is that Blockbuster pioneered this in the UK I believe.

I don't think blockbusters have ever been involved in rental by post. Most of the other rental stores failed years ago (when did global video fail?) so it is more surprising they held on so long.

 

[Darandio]

I don't think blockbusters have ever been involved in rental by post. Most of the other rental stores failed years ago (when did global video fail?) so it is more surprising they held on so long.

They most certainly have, they introduced it in 2002. I took on the original free trial they offered and kept it going for several months. The only issue at first was that you had the dvd for a set timescale, similar to renting from the store and were charged late fees. They later abolished this and brought in new packages.

After that, Screenselect and then Lovefilm appeared, offering the same thing.

 

[Jordeh]

They most certainly have, they introduced it in 2002. I took on the original free trial they offered and kept it going for several months. The only issue at first was that you had the dvd for a set timescale, similar to renting from the store and were charged late fees. They later abolished this and brought in new packages.

After that, Screenselect and then Lovefilm appeared, offering the same thing.

Goes to show how much better Lovefilm is marketed, people don't even realise Blockbuster pioneered such a service but I'm sure most people could vouch for being harassed to sign up for Lovefilm in a city centre.

 

[ATW Alex 101]

Yep, I don't think Lovefilm or Netflix or even Youtube did Blockbuster any good. I mean, there are more convenient ways to get a film nowadays as opposed to going out and hiring a DVD. But the one thing that is good about Blockbuster is their game rentals, I mean I think I am single handedly funding the Ellesmere Port branch from hiring games! Hardly anybody goes in there anymore for movies, just the games really if that.

I bet Lovefilm and Netflix are rubbing their hand with glee!

 

[onein37]

Anyone fancy a guess at the next big chain to go. My money would be on either Boots, WH Smith or Halfords. Or how about all three......

 

[Xenophon PCDGS]

Anyone fancy a guess at the next big chain to go. My money would be on either Boots, WH Smith or Halfords. Or how about all three......

Who are the current owners of all these three businesses ?

 

[Anon Mouse]

Has there been a major change over to internet-based businesses of those former customers of this company ? This seems to be a common denominator of such business failures in recent times.

There are towns throughout the land with empty shops on their High Streets and matters such as this will serve only to make matters worse.

And with the demise of Heavy Industry the future was seen to be in retail. Compared with the last recession I can see more empty shops now than what I can remember. I was shocked going into Eldon Square today that 3 shops at the Northumberland Street entrance were empty and one had a everything £6 closing down sale. Great way to tempt people in! I also noticed many empty shops inside including those in Eldon Garden (which incidently was void of other shoppers). I've also observed that the entrance on Blackett Street and the 2 floors on that bit are full of cheap shops and even charity shops, in a flagship shopping centre!! Its depressing and what is going to happen to all those people who have & are losing their jobs?

 

[142094]

Sure Boots is owned by an American private equity firm. Can't see them going to the wall, normally they are very busy everytime I use them. WH Smiths possibly - eveything seems overpriced, even when on special offer.

And with the demise of Heavy Industry the future was seen to be in retail. Compared with the last recession I can see more empty shops now than what I can remember. I was shocked going into Eldon Square today that 3 shops at the Northumberland Street entrance were empty and one had a everything £6 closing down sale. Great way to tempt people in! I also noticed many empty shops inside including those in Eldon Garden (which incidently was void of other shoppers). I've also observed that the entrance on Blackett Street and the 2 floors on that bit are full of cheap shops and even charity shops, in a flagship shopping centre!! Its depressing and what is going to happen to all those people who have & are losing their jobs?

Noticed that on Northumberland Street today, but when you go to the smaller town centres, it is even more noticeable.

 

[Anon Mouse]

Take Gateshead, Wallsend & North Shields. Even Whitley Bay is getting pretty bad and that used to be better than North Shields no too long ago!

Gateshead at the moment is shocking, even when the open the new town centre & Tesco I still think its gonna be pretty bad. After all most of the folk in Gateshead are used with going elsewhere for their shopping

 

[ainsworth74]

Noticed that on Northumberland Street today, but when you go to the smaller town centres, it is even more noticeable.

Yep Redcar high street is starting to look a bit grim with all the empty shops. Then again the feeling of grimness might just be Redcar

 

[Xenophon PCDGS]

Perhaps there should be a forum competition to name the highest number of consecutive fast food takeaway shops in a road in any town in Britain...:roll:

Those business executives who have convinced the British shopping public of the "wonders of online shopping" care not a jot how the "shop deserts" of town centres are becoming more and more the norm, rather than the exception. Look at all the value of the business rates that are being lost to the coffers of local authorities.

 

[Darandio]

Yep Redcar high street is starting to look a bit grim with all the empty shops. Then again the feeling of grimness might just be Redcar

Unless you like the sight of both charity and mobile phone shops, then Redcar would be heaven.

 

[starrymarkb]

I never used Blockbuster - back in the day the local Spar and Co-Op stores did rentals for a couple of quid and I used them. Blockbuster in Exmouth had a bigger range but also charged a lot more - plus it was 5 miles away! When the local stores stopped doing rentals I went over to LoveFilm for £5.99 per month. Blockbuster was £4 per rental! Though now I've moved to the city the Blockbuster by me closed a few months ago (They still had a store in Heavitree but that was a 20 min walk each way!)

 

[ilkestonian]

Who are the current owners of all these three businesses ?

Boots unlikely to fail IMHO (famous last words ?!?) because their retail arm is only a part of the business, they also have a large manufacturing operation, and are multinational. I think they merged or were taken over by Alliance a few years ago.

Halfords seem to be bucking the trend too, their fitting and workshop services doing well. Hard to do that online

I wouldn't bet on WHS being around for too long though. That would be a shame and a great loss. Where will I be able to read all the rail mags if they go?

 

[michael769]

Boots and Halfords are in good nick so I don't see them going down, but WH Smith have had a run of poor results and don't seem to have much to offer in terms of revitalising their offering, especially now that their travel division is facing stiff competition from Boots and M&S.

 

[Heinz57]

Although I've never been a customer of Blockbusters. This is not good at all, as the OP says, this is the third casulty of 2013 in as many weeks.

We can't keep carrying on like this. There will be nothing left. But the thing is, what can we do about it?

Anyone fancy a guess at the next big chain to go. My money would be on either Boots, WH Smith or Halfords. Or how about all three......

WH Smith, maybe. Boots and Halfords. Probably not.

Halfords are doing quite good at the moment. Sales are up on last year and the company is looking into new ventures. Including rolling out the new 'Next Gen' stores (these are supposed to be realy good). Plus they don't need to compete with the net, I don't know about you but I wouldn't want to buy a bulb or wiper or other part off the net. And besides, its a bit hard for someone to fit it for you over the internet!

 

[SS4]

Administration must be the best shopping centre in the country

 

[tbtc]

If anyone wants somewhere exotic to visit in 2013 I'd recommend Gateshead - http://www.flickr.com/photos/thebustocrookes/6041435062/

Perhaps there should be a forum competition to name the highest number of consecutive fast food takeaway shops in a road in any town in Britain...:roll:

I can do four in a row: http://www.flickr.com/photos/thebustocrookes/2969905964/

Can anyone beat that?

 

[Johnuk123]

We can't keep carrying on like this. There will be nothing left. But the thing is, what can we do about it?

Of course we can keep carrying on like this.

Once the post Xmas period has gone things will slow down but chain stores are slowly going to the wall.

Eventually nothing much will be left and this is driven by the customer.

Argos were mentioned late last year as not being in very good health, now if they can't compete then nobody can.

 

[Xenophon PCDGS]

I think that Argos went on a "store rationalisation" programme, to link up with their new TV channel (Freeview have this on channel 54).

We lost our nearest branch in Wilmslow as part of this recent move and have been offered branches still open in Stockport (just about acceptable) or Wythenshawe (never in a month of Sundays..)

If and when Primark ever announce that they are in trouble, it will be time to really worry..:roll:

 

[142094]

Yep Redcar high street is starting to look a bit grim with all the empty shops. Then again the feeling of grimness might just be Redcar

Well, you do have that vertical pier thing (will have to have a quick look one day, never been).

Remember reading a good quote recently, something along the lines of "all High Streets will be the same; an endless mix of pawnbrokers, takeaways, charity shops and bookeepers". There'll be nothing left at this rate.
--- old post above --- --- new post below ---

Can anyone beat that?

Ocean Road in South Shields is full of Indian restaurants and other takeaways, must beat that.

Also, the Curry Mile in Manc?

 

[Johnuk123]

I think that Argos went on a "store rationalisation" programme, to link up with their new TV channel (Freeview have this on channel 54).

We lost our nearest branch in Wilmslow as part of this recent move and have been offered branches still open in Stockport (just about acceptable) or Wythenshawe (never in a month of Sundays..)

I was actually talking to the manager of an Argos yesterday and she was of the opinion that the shops are slowly being reduced by about 80%.

 

[142094]

When you think, Amazon is really just Argos without the shops on the High Street (and the tax bill - another matter).

 

[Xenophon PCDGS]

I wonder if the Co-operative movement can see any openings for their organisation in this hour of retail constriction ?