Entertainment retailer Blockbuster is to close 129 stores over the coming weeks, following its collapse into administration last Wednesday.
Business advisory firm Deloitte, appointed administrators to the company following its collapse, has confirmed the decision to close the stores as part of a phased closure while it continues to search for a buyer.
A further 39 stores were already on notice of closure, and the administrators have warned that even more stores may need to be closed in order to ensure the profitability of the business.
Blockbuster has put an employee helpline and Employee Assistance Plan in place to help staff at the closing stores, who now face redundancy, to find new work.
Commenting on the decision, Joint Administrator Lee Manning said: “Having reviewed the portfolio with management, the store closure plan is an inevitable consequence of having to restructure the company to a profitable core which is capable of being sold.”
Blockbuster followed entertainment retailer HMV and photographic retailer Jessops into administration, and the collapse of men‘s fashion retailer Gio Goi was also announced on Wednesday.
Jessops closed its doors for the last time on Friday January 11th, but HMV continues to trade as administrators Deloitte said that 50 parties have expressed interest in buying its stores.
Deloitte said that the 129 Blockbuster stores earmarked for closure are to remain open for the time being, and has promised to give notice to customers when closing dates are decided.
Manning concluded: “We would like to thank the company‘s employees for their support and professionalism during this difficult time.
“We are also grateful to the customers for their continued support.”
