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Blockbuster UK goes into administration

16 January 2013

LONDON (AP) — The DVD and games rental company Blockbuster has become the latest entertainment firm to go into a form of bankruptcy in Britain, putting nearly 4,200 jobs at risk.

The accounting firm Deloitte said Wednesday it has been appointed as administrator of the company, which has 528 U.K. stores.

"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," said Lee Manning, one of the two administrators who are now running the company.

Blockbuster in Britain is a subsidiary of U.S.-based Blockbuster LLC, which itself was reorganized under American bankruptcy laws and then acquired in 2011 by Dish Network Corp. of Colorado.

Blockbuster U.K. is the second British firm in as many days to face administration amid pressure from Internet-based providers of movies and games. British music retailer HMV, the country's last big specialist retailer of recorded music, called in administrators Tuesday after more than 90 years in business.

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