Blockbuster calls in administrators

Blockbuster, the DVD and video rental company, has called in administrators in the latest blow to Britain’s beleaguered high streets.More than 4,000 jobs are at risk at Blockbuster, which has 528 shops in the UK and is headquartered in Uxbridge.Lee Manning, joint administrator for Deloitte, said: “In recent years Blockbuster has faced increased competition from internet based providers along with the shift to digital streaming of movies and games."The administration comes just a day after HMV, the entertainment retailer, failed and a week after camera chain Jessops collapsed.Camera retailer Jessops also fell into administration last week, meaning that thousands of jobs and hundreds of stores are at risk across the UK in the retail industry.Deloitte, which is also the administrator to HMV, said that gift cards will be honoured at Blockbuster. Gift vouchers at HMV have been rejected since the company called in administrators, causing uproar among consumers.Mr Manning said that "the core" of Blockbuster is still profitable and the company 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".He added: “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."Blockbuster, which opened its first store in Walworth Road, London, in 1989, has been under pressure from online rivals such as LoveFilm, and Netflix. Blockbuster launched its own online DVD rental service in 2002.