HMV and Blockbuster

After the increase of downloads- including films, music and television shows, as well as the use of websites such as 4od, and other retailers- HMV and Blockbuster have both announced that they have gone into administration.

HMV

HMV’s first store opened in Oxford Street in 1921, but has recently struggled against online retailing, digital downloads and supermarkets. The company has been in a financial crisis for over a year. An example of this is the fact it bought Waterstones in 1998, but had to sell last year due to the debts, selling of parts of the business.

         They have suspended their website, and said they won’t be accepting gift vouchers, causing outrage. Additionally, the company announced a month long sale of 25% off after their poor Christmas trading. Deloitte (the company managing their finances) will keep 239 stores open in the UK and Republic of Ireland open while assesses the business and seeks potential buyers, until then they will continue to trade.

Blockbuster

The first Blockbuster store opened in the UK in 1989, and the chain has 528 stores and employs 4,190 staff. However it has closed more than 100 stores in the past few years. Blockbuster went bankrupt in the US in 2011 but was bought by Dish Network in a £200 million deal. Prior to this, Blockbuster had expansion plans (selling electrical goods) but was not able to go ahead with this.
         The accountancy firm have said that Blockbuster will keep stores open until a buyer is found, they will also still be accepting gift cards and will keep their website open. This is due to the website sending out more discs than any other DVD rental service in the UK.