BusinessBusiness RecoveryR3 president and Neville Kahn to lead Blockbuster administration

R3 president and Neville Kahn to lead Blockbuster administration

Collapsed retailer calls in Deloitte administrators including trade body president Lee Manning

R3 president and Neville Kahn to lead Blockbuster administration

DELOITTE ADMINISTRATORS have been called to collapsed DVD rental retailer Blockbuster.

Insolvency trade body R3 president and Deloitte partner Lee Manning (pictured) has been appointed administrator. Neville Kahn, also a Deloitte partner, joins him, although Kahn’s hands are full as he has recently been appointed to high-profile and large administrations Comet and HMV. They are joined by Deloitte partner David Smith.

Blockbuster is headquartered in Uxbridge and has about 528 stores, employing approximately 4,190 staff.

The administrators confirmed the company has run into trouble in the last few years, facing increased competition in the rental market from online offerings such as Netflix and Lovefilm.

However, they believe that there is a profitable core business and hope to sell the company as a going concern. In the interim, they will continue to trade and, for now, gift cards will be honoured.

Manning 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.

“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.”

Related Articles

Using insolvency as a debt recovery tool

Business Recovery Using insolvency as a debt recovery tool

4m Emma Smith, Managing Editor
Kingston Smith liquidators to distribute millions to Bond International Software PLC members

Accounting Firms Kingston Smith liquidators to distribute millions to Bond International Software PLC members

11m Stephanie Wix, Writer
SFP sells off Pixel Projects and saves all staff

Business Recovery SFP sells off Pixel Projects and saves all staff

11m Stephanie Wix, Writer
Smith & Williamson appointed administrators of 4Children

Accounting Firms Smith & Williamson appointed administrators of 4Children

1y Richard Crump, Writer
Big Four insolvency specialist joins Gibson Hewitt

Business Recovery Big Four insolvency specialist joins Gibson Hewitt

1y Richard Crump, Writer
Administrators from KPMG appointed to City Motor Holdings

Business Recovery Administrators from KPMG appointed to City Motor Holdings

1y Richard Crump, Writer
Johnston Carmichael appointed as joint administrators for Axon Well

Accounting Firms Johnston Carmichael appointed as joint administrators for Axon Well

1y Stephanie Wix, Writer
Begbies Traynor appointed administrators of William Anelay

Accounting Firms Begbies Traynor appointed administrators of William Anelay

1y Richard Crump, Writer