Jobs fear as Blockbuster collapses, putting stores in Newport, Blackwood, Ebbw Vale and Caerphilly at risk

South Wales Argus: JOBS FEAR: More than 4,000 jobs are at risk after Blockbuster went into administration JOBS FEAR: More than 4,000 jobs are at risk after Blockbuster went into administration

DVD and video games rental firm Blockbuster UK has gone into administration, putting more than 4,000 jobs at risk, including posts at their three Gwent stores.

Deloitte, which is handling the administration, said the collapse was driven by competition from internet firms and digital streaming of movies and games.

The Uxbridge-based business opened its first store in London in 1989 and now trades from 528 outlets, including at Spytty Retail Park, Newport; Blackwood, Ebbw Vale and Piccadilly Square in Caerphilly. They employ 4,190 staff across the UK.

Blockbuster will continue to accept gift cards and credit bought through its trade-in scheme for second-hand movies and games, as well as operating its loyalty scheme.

The collapse comes a day after another music and entertainment retailer, HMV, hit the rocks, with more than 4,000 jobs under threat. Deloitte is handling both administrations.

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 they would be looking for a rescue deal for all or part of the business as a going concern.

Blockbuster's US parent went bankrupt in 2011 but was rescued by US pay-TV provider Dish Network in a 320 million US dollar (£200 million) deal, which saved hundreds of stores from closing and prevented tens of thousands of US job losses.

The UK group has sought to branch out in recent years in an attempt to revive business, including by expanding 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.

Do you work for Blockbusters in Gwent? Let us know at newsdesk@southwalesargus.co.uk or call 01633 777226

Comments (11)

Please log in to enable comment sorting

5:56pm Wed 16 Jan 13

Exile Elmo says...

Very sad for those who work their, but it will be interesting to see how the Argus tries to blame the council for this one. Probably cite excessive parking in Spytty.
Very sad for those who work their, but it will be interesting to see how the Argus tries to blame the council for this one. Probably cite excessive parking in Spytty. Exile Elmo

6:49pm Wed 16 Jan 13

Exile Elmo says...

oops.. there no their
oops.. there no their Exile Elmo

6:58am Thu 17 Jan 13

kalwales@hotmail.com says...

Elmo, its as if the Council havent a clue at present . . . they know times are tough for Customers & Businesses however they havent considered a contingency plan for the short term to help businesses that are struggling - maybe offer reduced rents for a short period of time and listen to residents and shoppers and employers on how to attract people to the town not drive them away - i know may business men/women who are struggling yet the council are doing nothing to help
Elmo, its as if the Council havent a clue at present . . . they know times are tough for Customers & Businesses however they havent considered a contingency plan for the short term to help businesses that are struggling - maybe offer reduced rents for a short period of time and listen to residents and shoppers and employers on how to attract people to the town not drive them away - i know may business men/women who are struggling yet the council are doing nothing to help kalwales@hotmail.com

8:59am Thu 17 Jan 13

Exile Elmo says...

Unfortunately the council cannot control the rents on private properties and business rates are set by central govenment.

Even the BBC are saying a lot of this is down to private landlords not dropping their rents. They are cutting their own throats in Newport.

Can't blame the council for everything.
Unfortunately the council cannot control the rents on private properties and business rates are set by central govenment. Even the BBC are saying a lot of this is down to private landlords not dropping their rents. They are cutting their own throats in Newport. Can't blame the council for everything. Exile Elmo

10:42am Thu 17 Jan 13

Howie' says...

Didn't take long Elmo, along comes Kalwales to blame the council for Blockbuster, a multinational company that operates in USA, Denmark, Brazil, Australia and Mexico as well as the UK, going into administration and it's Newport shop is in Spytty with plenty of free parking.
When are people going to understand that Business rates are paid to the Welsh Government and most rents are paid to private landlords and not Newport Council?

'i know may business men/women who are struggling yet the council are doing nothing to help'.

What do you expect the Council to do when they have a great big hole in their finances?
If you want to knock them then do it for sitting on their hands during the time of plenty and not making Newport City Centre in to an attractive place to work, shop and invest but even that would have done nothing .
When we have a Tory led Government that is following a policy of austerity, cuts to peoples income and cuts in capital projects and the one thing you never get with deep cuts and austerity is growth by inflicting poverty and hardship on your own country then sadly we are going to see a lot more shops go the same way as Blockbuster ( Stores outside the UK are not affected by the administration and continue to trade as normal), HMV, Jessops, Comet etc.
Didn't take long Elmo, along comes Kalwales to blame the council for Blockbuster, a multinational company that operates in USA, Denmark, Brazil, Australia and Mexico as well as the UK, going into administration and it's Newport shop is in Spytty with plenty of free parking. When are people going to understand that Business rates are paid to the Welsh Government and most rents are paid to private landlords and not Newport Council? 'i know may business men/women who are struggling yet the council are doing nothing to help'. What do you expect the Council to do when they have a great big hole in their finances? If you want to knock them then do it for sitting on their hands during the time of plenty and not making Newport City Centre in to an attractive place to work, shop and invest but even that would have done nothing . When we have a Tory led Government that is following a policy of austerity, cuts to peoples income and cuts in capital projects and the one thing you never get with deep cuts and austerity is growth by inflicting poverty and hardship on your own country then sadly we are going to see a lot more shops go the same way as Blockbuster ( Stores outside the UK are not affected by the administration and continue to trade as normal), HMV, Jessops, Comet etc. Howie'

10:45am Thu 17 Jan 13

Howie' says...

oops................
but even that would have done nothing to save Blockbuster which does not trade on the High St.
oops................ but even that would have done nothing to save Blockbuster which does not trade on the High St. Howie'

3:48pm Thu 17 Jan 13

Llanmartinangel says...

Howie' wrote:
Didn't take long Elmo, along comes Kalwales to blame the council for Blockbuster, a multinational company that operates in USA, Denmark, Brazil, Australia and Mexico as well as the UK, going into administration and it's Newport shop is in Spytty with plenty of free parking.
When are people going to understand that Business rates are paid to the Welsh Government and most rents are paid to private landlords and not Newport Council?

'i know may business men/women who are struggling yet the council are doing nothing to help'.

What do you expect the Council to do when they have a great big hole in their finances?
If you want to knock them then do it for sitting on their hands during the time of plenty and not making Newport City Centre in to an attractive place to work, shop and invest but even that would have done nothing .
When we have a Tory led Government that is following a policy of austerity, cuts to peoples income and cuts in capital projects and the one thing you never get with deep cuts and austerity is growth by inflicting poverty and hardship on your own country then sadly we are going to see a lot more shops go the same way as Blockbuster ( Stores outside the UK are not affected by the administration and continue to trade as normal), HMV, Jessops, Comet etc.
Well done Howie. Blame the current coalition for poor business models. All of the traders mentioned were in trouble because other businesses were using technology more efficiently. There are download services far better than HMV or Blockbuster and Jessops relied entirely on the camera market which has changed beyond all recognition due to smartphones and direct Internet imports. As for Comet, hugely expensive warehouses for goods most people buy online having checked other users reviews. Growing an economy from bankruptcy was never going to be easy and this government is hog tied by the foolish largesse of its predecessors.
[quote][p][bold]Howie'[/bold] wrote: Didn't take long Elmo, along comes Kalwales to blame the council for Blockbuster, a multinational company that operates in USA, Denmark, Brazil, Australia and Mexico as well as the UK, going into administration and it's Newport shop is in Spytty with plenty of free parking. When are people going to understand that Business rates are paid to the Welsh Government and most rents are paid to private landlords and not Newport Council? 'i know may business men/women who are struggling yet the council are doing nothing to help'. What do you expect the Council to do when they have a great big hole in their finances? If you want to knock them then do it for sitting on their hands during the time of plenty and not making Newport City Centre in to an attractive place to work, shop and invest but even that would have done nothing . When we have a Tory led Government that is following a policy of austerity, cuts to peoples income and cuts in capital projects and the one thing you never get with deep cuts and austerity is growth by inflicting poverty and hardship on your own country then sadly we are going to see a lot more shops go the same way as Blockbuster ( Stores outside the UK are not affected by the administration and continue to trade as normal), HMV, Jessops, Comet etc.[/p][/quote]Well done Howie. Blame the current coalition for poor business models. All of the traders mentioned were in trouble because other businesses were using technology more efficiently. There are download services far better than HMV or Blockbuster and Jessops relied entirely on the camera market which has changed beyond all recognition due to smartphones and direct Internet imports. As for Comet, hugely expensive warehouses for goods most people buy online having checked other users reviews. Growing an economy from bankruptcy was never going to be easy and this government is hog tied by the foolish largesse of its predecessors. Llanmartinangel

6:03pm Thu 17 Jan 13

Howie' says...

'this government is hog tied by the foolish largesse of its predecessors'.

Really? How so?

Were now heading towards a triple recession and the bookies are taking bets on another one, just heard on the radio that the 'Institute of Fiscal Studies' (hardly a raving pinko organisation) have said if the present policy's are pursued that there is a possibility of 10 years of destitution but I suppose that's Labour's fault as well.

As for the shops closing do you honestly think it has nothing to do with the billions this Government are taking out of the economy leaving people with little left to spend.
'this government is hog tied by the foolish largesse of its predecessors'. Really? How so? Were now heading towards a triple recession and the bookies are taking bets on another one, just heard on the radio that the 'Institute of Fiscal Studies' (hardly a raving pinko organisation) have said if the present policy's are pursued that there is a possibility of 10 years of destitution but I suppose that's Labour's fault as well. As for the shops closing do you honestly think it has nothing to do with the billions this Government are taking out of the economy leaving people with little left to spend. Howie'

6:27pm Thu 17 Jan 13

Llanmartinangel says...

Quote from Liam Byrne to his successor 'all the money has gone'. When you are borrowed as far in as Labour left us, servicing the interest alone is a huge burden. Then there's all the public sector jobs and social programmes they signed up to. You're a figures man: How many people creating wealth does it take to pay the wages of one civil servant through income tax? The alternative to austerity is borrow more. Hmmm..run that one by me again? And all the businesses you quoted were not impacted by reduced spending, the market just move elsewhere. Example: more people watch films at home now than before and yet BBuster go through, cinemas don't.
Quote from Liam Byrne to his successor 'all the money has gone'. When you are borrowed as far in as Labour left us, servicing the interest alone is a huge burden. Then there's all the public sector jobs and social programmes they signed up to. You're a figures man: How many people creating wealth does it take to pay the wages of one civil servant through income tax? The alternative to austerity is borrow more. Hmmm..run that one by me again? And all the businesses you quoted were not impacted by reduced spending, the market just move elsewhere. Example: more people watch films at home now than before and yet BBuster go through, cinemas don't. Llanmartinangel

1:32pm Fri 18 Jan 13

Howie' says...

You gotta love that 'tongue in cheek' comment from Byrne, really got the juices of the right wing press and their avid followers going and nearly 3 years later it's still working.

In 2008, 19.6 per cent of all jobs were in the public sector. In 1997, it was 19.5 per cent. Even today, the proportion of public sector jobs remains lower than it was at the end of the early nineties recession: 23.1 per cent of jobs were in the public sector in 1992, compared with 21 per cent in 2010 and since then hundreds of thousands of PS jobs have gone with another 81,000 in the pipeline.

The 'Social Programmes' as you call them were to invest in Hospitals, Schools, infrastructure and taking kids out of poverty because the level of investment in those areas by the previous Tory Government's from 1979 had been abysmal compared to the European spending in those areas.

How many people creating wealth does it take to pay the wages of one civil servant through income tax?

Hmm, strange question. I'm of the mind that for Governments to function then you need Civil Servants and they are paid by the taxpayer. Apart from the US at 18% the UK at 19% has less public sector workers than Portugal 27%, Greece 28% (Even with the mass redundancy's), Italy 30%, Germany 31% (whose PS workers received a 6.3% pay rise last March), France 34% and China 50% (mostly due to China's state owned enterprises).

The alternative to austerity is borrow more. Hmmm..run that one by me again?

Er no, the alternative is to plan for growth and invest which this Government are starting to talk about at last, which is what a lot of Countries like America have been doing where investment in the last quarter grew by 9.6%, annual growth was 2% unlike the UK under this Tory led Government where we have negative growth and heading for a triple dip recession and loss of our triple A credit rating

And all the businesses you quoted were not impacted by reduced spending, the market just move elsewhere.

Strange that all these businesses are folding one after another in such a short space of time, on Question Time last night it was stated that there are another 104 to follow. Blockbuster and HMV (His Masters Voice for those old enough to remember) for instance has only put the UK side of their business in to administration whilst BB continues to trade normally in the USA, Denmark, Brazil, Australia and Mexico.
HMV is still trading in Singapore and Hong Kong, both these company's are exposed to the same trading competition in those country's as in the UK but whilst those other countries are mostly in an economic cycle of growth the UK is not, workers in the private and public sector have had no or little increase in their wages for three years, billions have been taken from welfare payments, people are afraid to spend because they are fearful for their jobs, the jobs in the private sector that this Government claim to have created have now mostly been shown as fantasy. This situation was not created by accident it is down to Cameron and Osbourne's policy's. As I said before you wont get growth following a policy of austerity and until the money starts to go around the system again then we will see a lot more closures.
You gotta love that 'tongue in cheek' comment from Byrne, really got the juices of the right wing press and their avid followers going and nearly 3 years later it's still working. In 2008, 19.6 per cent of all jobs were in the public sector. In 1997, it was 19.5 per cent. Even today, the proportion of public sector jobs remains lower than it was at the end of the early nineties recession: 23.1 per cent of jobs were in the public sector in 1992, compared with 21 per cent in 2010 and since then hundreds of thousands of PS jobs have gone with another 81,000 in the pipeline. The 'Social Programmes' as you call them were to invest in Hospitals, Schools, infrastructure and taking kids out of poverty because the level of investment in those areas by the previous Tory Government's from 1979 had been abysmal compared to the European spending in those areas. How many people creating wealth does it take to pay the wages of one civil servant through income tax? Hmm, strange question. I'm of the mind that for Governments to function then you need Civil Servants and they are paid by the taxpayer. Apart from the US at 18% the UK at 19% has less public sector workers than Portugal 27%, Greece 28% (Even with the mass redundancy's), Italy 30%, Germany 31% (whose PS workers received a 6.3% pay rise last March), France 34% and China 50% (mostly due to China's state owned enterprises). The alternative to austerity is borrow more. Hmmm..run that one by me again? Er no, the alternative is to plan for growth and invest which this Government are starting to talk about at last, which is what a lot of Countries like America have been doing where investment in the last quarter grew by 9.6%, annual growth was 2% unlike the UK under this Tory led Government where we have negative growth and heading for a triple dip recession and loss of our triple A credit rating And all the businesses you quoted were not impacted by reduced spending, the market just move elsewhere. Strange that all these businesses are folding one after another in such a short space of time, on Question Time last night it was stated that there are another 104 to follow. Blockbuster and HMV (His Masters Voice for those old enough to remember) for instance has only put the UK side of their business in to administration whilst BB continues to trade normally in the USA, Denmark, Brazil, Australia and Mexico. HMV is still trading in Singapore and Hong Kong, both these company's are exposed to the same trading competition in those country's as in the UK but whilst those other countries are mostly in an economic cycle of growth the UK is not, workers in the private and public sector have had no or little increase in their wages for three years, billions have been taken from welfare payments, people are afraid to spend because they are fearful for their jobs, the jobs in the private sector that this Government claim to have created have now mostly been shown as fantasy. This situation was not created by accident it is down to Cameron and Osbourne's policy's. As I said before you wont get growth following a policy of austerity and until the money starts to go around the system again then we will see a lot more closures. Howie'

12:56pm Thu 24 Jan 13

Gw Ent says...

Gwent does not exist. It was a failed local government experiment. Born 1974 to universal hatred. Died 1996 - SIXTEEN YEARS AGO!
Gwent does not exist. It was a failed local government experiment. Born 1974 to universal hatred. Died 1996 - SIXTEEN YEARS AGO! Gw Ent

Comments are closed on this article.

click2find

About cookies

We want you to enjoy your visit to our website. That's why we use cookies to enhance your experience. By staying on our website you agree to our use of cookies. Find out more about the cookies we use.

I agree