Blockbuster UK Shuts Down Entirely

News
By Jane McEntegart
published

Bad news for Blockbuster UK staff ahead of Christmas.

Blockbuster has been struggling for years, but it looks like the company's UK operations is finally done for. Moorfield's Corporate Recovery today announced the closure of the remaining Blockbuster stores in the United Kingdom. 

"It is with regret that we have to make today's announcement, we appreciate this is a difficult time for all concerned and would like to thank staff for their professionalism and support over the past month," said Simon Thomas and Nick O'Reilly, joint administrators. "Unfortunately, we were unable to secure a buyer for the group as a going concern and as a result had to take the regrettable action to close the remaining stores."

Blockbuster had only 91 stores left operating in the UK after entering administration in January this year. It was rescued by Gordon Brothers in March. At that point, Blockbuster had 264 stores in the UK. Moorsfield says all remaining stock will be sold by this coming Sunday, December 15, with the help of hefty discounts (up to 90 percent off sale prices). Though it's not mentioned in the official release, Pocket-Lint reports that 808 people will lose their jobs.

Blockbuster filed for Chapter 11 bankruptcy in the United States back in 2010 and its assets were purchased by Dish Network in a $320 million bankruptcy court auction in April of 2011.

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Jane McEntegart
9 Comments Comment from the forums
  • rodbowler
    I have to say, LackLuster Video in New Zealand was terrible; two year ond movies still in the "New Release!" section, poor selection of movies and T.V. episodes, sky high prices and poor service. I was not sad to see them fade from existence.
    Reply
  • houldendub
    Sad to see them go, while Netflix and the like are good, nothing compares to renting out a BluRay and watching in full quality, rather than this streamed, lossy nonsense.

    The guys in my local one also knew a shed load about films, and obviously weren't there just because they needed money. Shame to see them out of a job they seemed to actually enjoy!

    Sure, they were crappy with the selection now and again, but if Netflix or Lovefilm hasn't got what you want to stream, you've either got to get the film delivered or pirate it, rather than just being able to walk around the corner and pick it up.
    Reply
  • southernshark
    It was cool when it first open but became lame pretty quick. I remember when the store was new. There were always pretty girls working there and they even gave away free popcorn. That made it worth going (I was a teenage boy). But as time passed, it became pretty lame.
    Reply
  • JOSHSKORN
    Oh, what will the elderly do?
    Reply
  • Spencer Castillo
    watching be kind rewind and then this news makes me more sad
    Reply
  • quantum mask
    It was their own doing. They charged way too much. When Netflix ($8 unlimited streaming) and Redbox ($1 DVD rental) took advantage of their overpriced structure, their rebuttal was to come out with their own vending style boxes and streaming. BUT THEY WERE STILL MORE EXPENSIVE THAN THEIR COMPETITION. It's like they never learned. Or they knew and were just too greedy. Good riddance.
    Reply
  • jimmysmitty
    Video Killed the Radio Star and Online Streaming Killed the Video Store.

    The cycle continues.
    Reply
  • g-unit1111
    12171602 said:
    It was their own doing. They charged way too much. When Netflix ($8 unlimited streaming) and Redbox ($1 DVD rental) took advantage of their overpriced structure, their rebuttal was to come out with their own vending style boxes and streaming. BUT THEY WERE STILL MORE EXPENSIVE THAN THEIR COMPETITION. It's like they never learned. Or they knew and were just too greedy. Good riddance.

    Not only that they relied on a completely monopolistic business practice that allowed them to control the rental market almost first hand. That huge DVD collection you have now? That would not have been possible back in the 90's when Blockbuster was charging $100 a tape. When the studios started saying no to Blockbuster's monopoly, they started tanking. It was pretty much business suicide.
    Reply
  • tearlach2
    g-unit1111 Those prices are what the studios were charging rental stores for the privilege to rent movies before the sale to the general public. Pressure from streaming and piracy (free flow of information/goods/services) acting on the studios' distribution methods and timings (restrictions) are what has lowered the value of what many people are willing to pay for a rental to about a dollar a movie.
    Because the movie studios could and there was no internet or cheap-to-make kiosks they came up with the idea to make even more money by staggering the amount they would sell movies for after they pulled them from the theaters. Movie-rental was only an outgrowth of that and rental companies were locked into buying movies from the studios at those super high prices and for the license to rent and free promotional materials. And within that business environment which Hollywood created the people who started Blockbuster basically tried to be the Apple of hard copy movie rental. Maybe budget rental places can make it a few more years but after that I think they are going to basically become curiosity shops.
    Reply