Blockbuster calls in the administrators leaving Dagenham workers uncertain about future
- Credit: Archant
Jobs in Dagenham could be at risk as Blockbuster becomes the fourth high street retailer in three months to call in the administrators.
The DVD and video games rental company, which has a store in Becontree Avenue and employs 4,190 staff nationwide, appointed financial services giant Deloitte to find a buyer for its business on Wednesday, January 16.
While 129 of the company’s 528 UK stores are earmarked for closure, so far there is no sign that Dagenham is on the list. Meanwhile trading will continue as normal but gift cards can only be used for up to half the price of any purchase, although the full value of the card can still be used in this way.
Lee Manning, joint administrator and partner at 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.
“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.
He added: “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.”
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High street chain HMV also called in Deloitte as administrators earlier this month, following the folding of Comet and Jessops since November.
In recent years Barking and Dagenham has seen a number of stores close including Birthdays, owned by card company Clintons, and Woolworths.