Staff at Wokingham Blockbuster facing redundancy after chain's administrationBy Laura Herbert
January 23, 2013
Wokingham's Blockbuster store will close after the firm called in administrators.
The chain, which has 528 stores nationwide, announced on Saturday that it plans to close 129 stores in addition to the 31 shops which have already been given notice of closure.
Staff at the Peach Street store are now facing redundancy following the announcement.
Accountancy firm Deloitte took over the running of the DVD and games rental company last Wednesday.
The closure of the 129 stores will be phased over the coming weeks, but Blockbuster stores are currently open and trading as normal.
A spokeswoman for Blockbuster said: “Each store earmarked for closure is judged on its individual performance, sales and terms on its lease.”
The company has set up an employee helpline and is running an Employee Assistance Programme to help all the staff faced with the prospect of losing their jobs find other work.
Lee Manning, joint administrator, 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.
“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.”
Blockbuster also has stores in Chalfont Way in Lower Earley and Forest Park in Bracknell, but neither store is on the list of 129 shops to close.
The firm’s collapse follows that of music and DVD store HMV, which went into administration last week, and high street camera shop Jessops, which closed all of its stores shortly after announcing it had gone into administration earlier this month.
The firm’s profits have been hit by the growth of online rental services and, more recently, the popularity of streaming films over the internet.