EMCC European Monitoring Centre on Change

Blockbuster

Company/Organisation:
Blockbuster

Geographic Location

Country: United Kingdom

Company

Sector: Administrative services
Administrative and support service activities
77.22 - Rental of video tapes and disks
Number Employed: 2000

Employment Effects

Announcement Date: 14-11-2013
Planned Job Reductions min: 2000
Type of Restructuring: Bankruptcy

Additional Information

DVD and games rental chain Blockbuster has announced plans to close 72 stores resulting in the loss of about 452 jobs. The closures represent a 25% reduction of its 264 outlets and 2,000 employees.

The company went into administration earlier this week for the second time this year (see reports on the first collapse).  The firm blamed fierce competition from online DVD rental providers and supermarkets.

The company had 528 stores when it initially collapsed into administration in January 2013.

UPDATE 05-12-2013: Blockbuster announced to finally close down all of its remaining stores in the UK by 16 December 2013. This decision affects 153 remaining stores, employing 1,235 staff. In total, the closure of Blockbuster resulted in the cut of over 2,000 jobs that remained after Gordon Brothers had taken over the company in March earlier this year.