Blockbuster

Blockbuster has gone the way of HMV and Jessops, and has gone into administration.

Deloittes will act as administrators.

Lee Manning, joint administrator 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.

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.”

 Blockbuster employs over 4,000 people.

HMV Collapse

Now that HMV has gone the way of Jessops and placed itself in administration, aside from the worries faced by the staff of HMV those with gift vouchers will also be worried.

As of today HMV have stopped accepting HMV gift vouchers. Whilst the administrators may choose to accept them at some stage in the future, there is no guarantee that they will. Additionally, if any part of the chain is sold to a third party the new owner is under no legal obligation to accept the gift vouchers.

Which? recommend that those holding gift vouchers in failed chains such as Jessops and HMV write to the administrators to ask for a refund (a process that offers no guarantees and may well take at least 12 months). Which? have a helpful Q&A section wrt failed retailers, which also has a link to a template for a letter asking for a refund of gift vouchers held.

Ironically, not everyone has done so badly out of the failure of HMV. A number of companies/individuals heavily shorted HMV in the days running up to its demise in the hope of making a killing out of its failure.

Jessops On The Verge of Administration

The Telegraph reports that Jessops the camera retailer is on the verge of administration.

As such there is a risk that, once in administration, Jessops's gift vouchers may no longer be accepted if the administrator decides they are no longer valid in the stores.

UPDATE

PwC has now confirmed that Jessops has now filed for administration.