Blockbuster UK breaks its silence

Ben Parfitt
Blockbuster UK breaks its silence

The UK arm of rental and entertainment chain Blockbuster has finally spoken out about the ongoing speculation surrounding the British arm of the retailer.

Speaking of the spiralling media reports, UK MD Martin Higgins stated: “That kind of press is always a challenge for employees, suppliers and partners, and it is important for me to emphasize that Blockbuster UK is a separate legal entity, which is well-run and in a healthy financial condition with solid equity and no debt beyond normal accounts payables.

“In 2009 we had another solid year, where we succeeded in increasing our rental revenue. The combination of new customer propositions, competitive pricing and a continued tight focus on operating costs enabled us to increase profits by 18 per cent.

“This year we will continue to see increased demand for the new Blu-ray format, in which we have invested heavily and which has continued to drive rental growth in the first few months of this year.

“The UK business is in a very good shape”.

Higgins went on to stress that he doesn’t think Blockbuster’s US parent company will, as it has itself suggested, fall into bankruptcy. And even if it does, the exec claims that the UK operations will remain intact.

“In the unlikely event that our parent company in the US goes bankrupt, it would have no operational impact on Blockbuster UK. The UK management is 100 per cent focussed on maintaining the best interests of Blockbuster UK, and I remain confident that we can continue to have a healthy business in the UK in the years to come.”

Tellingly, the statement makes no reference to the UK arm of Blockbuster currently being up for sale.

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Tags: uk , Blockbuster , higgins , bankruptcy , bankrupt , robust , silence

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