The U.K. version of the Blockbuster chain has entered in to administration, the country’s version of Chapter 11 bankruptcy protection.
While the U.S. version of the Blockbuster chain has been struggling for some time now, the foreign branches have been somewhat immune as most of them operate under a licensing agreement and are not owned by the main corporation. Despite this arrangement, it seems that the U.K. arm has been suffering from the same issues as its U.S. counterpart.
Blockbuster U.K. today went into administration today which is the U.K. equivalent of Chapter 11 bankruptcy in the U.S.
Deloitte will be taking over the day-to-day operations of the company that currently has 528 retail locations and employs 4,190 people. It says that some divisions are profitable, but the overall company has had trouble fighting off the online rental and sales companies. Buyers will be sought for portions or the entirety of the business.
Blockbuster marks the third major company to go into administration this month with the Jessops electronics chain being the first earlier this month, and HMV having filed just yesterday. Late last year the Comet chain of electronics retailers also closed up operations after having gone through administration. Brick & mortar retailers are not having an easy time of it currently in the U.K. If you’ll notice, it is mainly those that sell products that are easily obtained online either through streaming media or purchasing at large discounts from retailers such as Amazon.
Any way you slice it, being a retailer in the U.K. right now is not looking promising.