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As if things weren’t bad enough for in-administration Blockbuster UK, a newspaper investigation has landed the company in even hotter water.
The Guardian reports that over a 15-year period the company has paid less than 250k in corporation tax despite sales of over 3.5bn and profits of 37m in the period.
The paper added that over the 15 years in which it was able to access accounts for, the firm struggled to consistently break even. It was also charged nearly 78m in royalty fees for use of the Blockbuster brand, IT systems and other franchise rights.
Nonetheless, Blockbuster US – which itself was saved from the brink by Dish in 2011 – remains the UK business’ largest creditor and is owed 23m in loans and unpaid royalties. Blockbuster US filed for bankruptcy protection in America earlier this week.
The report threatens to drop Blockbuster into the same sort of PR nightmare that others such as Google, Amazon and most notably Starbucks have had to endure over recent months.
