Picture is copyright of Blockbuster UK.
CUMBERNAULD’S Blockbuster store could be next to go as the company’s administrators announce nearly 130 store closures.
On Friday (18th January), the Joint Administrators to Blockbuster confirmed plans to close 129 stores over the coming weeks as part of a phased closure, in addition to 31 which had already been put on notice of closure. During this time there will be a number of closing down promotions across the stores to supplement those already on offer across the estate.
The Joint Administrators continue to review the profitability of the store portfolio and announcements of further closures may be made in coming weeks – although the chain’s Cumbernauld branch is believed to be profitable.
Whilst staff in those stores affected by the closures will be facing redundancy, the closures are not taking place with immediate effect. A dedicated employee helpline is in place and the Company is running an Employee Assistance Programme to help those staff facing redundancy find other jobs.
Stores will remain open for business as usual and customers will be notified in advance of closure so that they can return their outstanding rental items beforehand. The standard terms and conditions remain in place during this time.
Lee Manning, Joint Administrator, added: “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. 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.”
Lee Manning, Matthew David Smith and Neville Kahn, partners at Deloitte, the business advisory firm, were appointed Joint Administrators to Blockbuster Entertainment Limited and Blockbuster GB Limited who trade as Blockbuster, the DVD and video games rental Company on January 16th 2013.
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