62 more Blockbuster stores to close and rentals suspended as end nears

Administrators Moorfields Corporate Recovery has confirmed that another 62 Blockbuster stores are to close.

This means another 427 workers will lose their jobs, although Moorfields has finally admitted – as revealed by MCV last month – that it expects the company to close in the near future.

Add this to last month’s closure of 72 stores and loss of 452 jobs and that means that a total of 134 stores have been lost, costing 879 jobs. Don’t forget, either, that 324 stores were lost when Blockbuster entered administration for the first time earlier this year.

That leaves Blockbuster with just 91 stores and 808 employees.

MCV also understands that Blockbuster stores are shortly to suspend all rental activities, although this was not confirmed in Moorfields’ statement.

Unfortunately we have still not received any acceptable offers so as a result we may be forced to close the remaining 91 stores affecting 808 employees,” a statement said.

With the Chancellor’s Autumn Statement due later today Moorfields are urging the Chancellor to take urgent action on business rates as retailers continue to struggle. Whilst the difficulties faced by Blockbuster are not solely due to the burden of business rates the group was paying a sizeable 3.8m on a turnover of 40m.

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.”

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