Blockbuster UK to enter administration, will honour gift cards and trade-in credit
"The core of the business is still profitable."
Video and gaming rental service Blockbuster has become the second UK entertainment establishment to enter administration this week.
HMV administrator Deloitte will also be appointed as administrator of Blockbuster.
In a statement sent to Eurogamer, Deloitte said Blockbuster will continue trading as normal for the time being and will honour gift cards and trade-in credit.
"In recent years Blockbuster has faced increased competition from internet-based providers along with the shift to digital streaming of movies and games," commented Deloitte administrator Lee Mannnig.
"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 has 528 stores across the UK and employs 4190 staff.
HMV announced on Monday evening that it would enter administration. The administrators moved in yesterday. There's been anger that the store isn't honouring gift cards many people receive as Christmas presents. The HMV website has also been taken offline. HMV, however, insists it still has a future.