Blockbuster latest to go into administration

Hard on the heels of the news that HMV has gone into administration and following Jessops' closure at the end of last year, DVD rental firm Blockbuster has become the latest UK High Street casualty after struggling against internet competitors.

The chain has 528 stores and employs 4,190 staff.

Deloitte, the accountancy firm which will now take over running the firm and which is also the administrator for HMV, said that Blockbuster would keep trading while a buyer is found.

"We are working closely with suppliers and employees to ensure the business has the best possible platform to secure a sale, preserve jobs and generate as much value as possible for all creditors," said Lee Manning, from Deloitte's Restructuring Services practice.

"The core of the business is still profitable and we will continue to trade as normal in both retail and rental whilst we seek a buyer for all or parts of the business as a going concern.

"During this time gift cards and credit acquired through Blockbuster's trade-in scheme will be honoured towards the purchase of goods."

The first Blockbuster store in the UK opened in 1989. It has closed more than 100 outlets in the past few years, and questions have to be asked as to whether there is still a place for such a model in modern retail.