Moorfields administrators to close all Blockbuster stores
All Blockbuster stores to close this weekend after administrators did not receive any acceptable offers
MOOREFIELDS ADMINISTRATORS are to close all the remaining Blockbuster stores by the end of the year.
The company collapsed for the second time in a year with Simon Thomas, and former insolvency trade body R3 president Nick O’Reilly appointed joint administrators to TS Operations, which traded as Blockbuster.
Earlier this year Deloitte administrators sold the company to Gordon Brother Europe which included 264 stores and about 2,000 employees. However, since Moorfield administrators were called, they have closed more than 100 stores.
The administrators have now said that they are to close all remaining stores which will affect more than 800 staff.
A statement from Thomas said that they had not received any acceptable offers and “we may be forced to close” the remaining stores.
He also argued that given the chancellor’s autumn statement did not go far enough with a cap on business rates of 2%.
“Whilst the difficulties faced by TS Operations t/a Blockbuster are not solely due to the burden of business rates the group was paying a sizeable £3.8m on a turnover of £40m,” he said.
“Even if, as speculated, the rates increase were capped at 2% Blockbuster would have faced an increase of £75,000 on an already considerable £3.8m.
All rental activity will cease from Saturday and stock sold at discounts of up to 70%, Sky News reports.
