Well known movie and games rental chain Blockbuster is set to close it doors by the end of 2013, with around 1200 job cuts to take place. The company has been struggling for some time having previously closed a number of stores across the country. A new owner took over the company in a failed attempt to turn the business around back in March.
The company is currently in administration and has already closed over 100 of its stores, but no one has come forward to buy the business meaning the further stores will ultimately be closed, more than sixty immediately. The closures will result in over 420 job losses for workers, a major blow for employees at Christmas time.
The remaining stores will be shut down by the end of the year, and over 800 jobs will be lost unless a buyer comes forward to save the business. Blockbuster stock will be significantly reduced and sold in a bid to make as much money as possible through the closure.
Since its initial collapse at the beginning of this year, Blockbuster has continued to struggle, competing with online streaming companies and movie rental. The price of DVDs in the UK have significantly been reduced, meaning consumers now would prefer to buy rather than rent at a similar price. As a result, the company entered administration in November.
Retailers in the UK have been struggling in general for some time with the rise of online sales. Pair this with the increasing cost of living and the low wages for workers, the UK’s economy is not in a good state at present. Blockbusters is amongst a number of major UK high street retailers to be struggling this year; Barratts shoe store went into administration earlier this year, and Sky News recently announced expected job losses.
A not so bright start for high street retailers as we enter into 2014.