The UK arm of DTH operator Dish Network’s Blockbuster film retailer has gone into administration.
Deloitte, which is handling the administration, said the collapse was driven by competition from internet firms and digital streaming of movies and…
The UK arm of DTH operator Dish Network’s Blockbuster film retailer has gone into administration.
Deloitte, which is handling the administration, said the collapse was driven by competition from internet firms and digital streaming of movies and games.
Back in 2011, Blockbuster entered Chapter 11 bankruptcy protection in the US, and was later acquired by Dish in a US$320m deal. The UK arm of the DVD and video games rental firm is also owned by Dish, but it is run separately.
Lee Manning, joint administrator and partner in Deloitte’s restructuring services practice, 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.”
Deloitte stressed Blockbuster’s core business was profitable and it would be looking for a rescue deal for all or part of the business as a going concern.
Dish purchased Blockbuster in an acquisition spree that also saw it snap up ATC – MSS licence holding satellite operators DBSD North America and Terrestar North America out of bankruptcy. It was recently given regulatory permission to roll out terrestrial LTE services with this spectrum in the US.
In the UK, Blockbuster has sought to branch out in recent years in an attempt to revive its business.
It expanded its online rental offering, while also launching a trade-in service for pre-owned titles, allowing members to swap second-hand games and movies for cash or credit on their membership accounts.
But sales have been in decline, falling to £182m in 2012 from £215m in 2011, with losses widening to £11.2m last year.
