Wednesday, Jan 16, 2013

Still, so long as we keep house prices high the economy is saved

City AM: Blockbuster collapses into administration

DVD rental firm Blockbuster has become the latest retailer to bite the dust, and today appointed Deloitte as its administrator.
The collapse of Blockbuster, which employs 4,190 staff across 528 stores in the UK, comes just two days after high street stalwart HMV hit the rocks.
Lee Manning, Matthew David Smith and Neville Kahn, partners at business advisory Deloitte, have been appointed joint administrators.
“In recent years Blockbuster has faced increased competition from, internet based providers along with the shift to digital streaming of movies and games,” said Manning, joint administrator and partner in Deloitte’s restructuring services practice.

Posted by sibley's b'stard child @ 03:34 PM (2197 views)
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14 Comments

1. mr g said...

“In recent years Blockbuster has faced increased competition from, internet based providers along with the shift to digital streaming of movies and games,”

Maybe that’s part of the problem but I believe that the underlying reason is that a majority of people are struggling financially and therefore cutting back on discretionary spending, expect several more problems amongst retailers in the coming months.

And the first signs of HPC perhaps?

Wednesday, January 16, 2013 04:15PM Report Comment
 

2. mr g said...

Are DVD rental prices included in the inflation figures?

If so, will the ONS have to find some other equally unnecessary item to massage the figures?

Wednesday, January 16, 2013 04:27PM Report Comment
 

3. khards said...

Perhaps this could open opportunities for individuals to open video rental shops like they had in the 90's before blockbuster took over.

A few years back I saw one of those self-service DVD machines - haven't seen one since.

Wednesday, January 16, 2013 04:52PM Report Comment
 

4. taffee said...

high street retailers shareprices must be in the inflation basket I would have thought!

Wednesday, January 16, 2013 04:58PM Report Comment
 

5. mark wadsworth said...

When there's something weird
In your neighbourhood
Who you gonna call?

Administrators.

Wednesday, January 16, 2013 05:11PM Report Comment
 

6. The Retailer said...

Mr g has hit the nail on the head Its the widespread lack of money left after paying the bills The internet has played its part ,but the powers that be prefer its progress, rather we are all screwed either that or very poor journalisam .The bakers down the road is moaning about poor sales is that the internet as well.

Wednesday, January 16, 2013 05:21PM Report Comment
 

7. happy mondays said...

But Yet - House prices rise at highest rate seen in seven months ? WTF..


http://www.independent.co.uk/property/house-and-home/house-prices-rise-at-highest-rate-seen-in-seven-months-8452491.html

Wednesday, January 16, 2013 05:26PM Report Comment
 

8. libertas said...

Just IMAGINE which stores will collapse when interest rates rise.

Blockbusters is a pile of crap, but government really MUST bite the bullet and reduce VAT immediately because if it does not, and lets so many businesses collapse, it could get less money in the future from VAT than if it drops it now. Like, how much VAT will they make if 20% of the High Street goes bust?

Cut it now to 10% and then phase it out. Get rid of business rates, which only make about £23bn but destroy small businesses. Get rid of that and no doubt government would make more from corporation tax.

Wednesday, January 16, 2013 05:35PM Report Comment
 

9. mark said...

blockbusters went bust in USA a few years back

Wednesday, January 16, 2013 06:09PM Report Comment
 

10. Russ W said...

Blockbusters are in administration because their business model is dated - consumer demand for home entertainment is buoyant (actually increases in times of hardship) however there is very little incentive for people to use them.

I do believe however that more action has to be taken to make sure that on-line retailers pay a fairer share of tax and / or give greater relief to high street retailers along the lines of those suggested by libertas.

Wednesday, January 16, 2013 06:18PM Report Comment
 

11. Kj said...

As members of the EU, we're not allowed to reduce VAT below 15%

Wednesday, January 16, 2013 06:50PM Report Comment
 

12. Carl said...

It's surprising they stayed open so long I'm afraid. There won't be a market for DVDs or blue rays within the next few years. What were they going to sell?

Thursday, January 17, 2013 01:41AM Report Comment
 

13. mark wadsworth said...

Piddly mixes the sensible with the idiotic:

"Cut -VAT] now to 10% and then phase it out. Get rid of business rates, which only make about £23bn but destroy small businesses"

VAT is the Worst Tax, Business Rates is the best tax as it is like LVT, it has no impact on business activity, it is born by landowners in their capacity as such. For sure, there are plenty of owner-occupier businesses, but if they can't even make enough money to pay their own Business Rates, then clearly they would be far better off shutting the business down and becoming landlords. That way they get more money for less effort and a more useful or productive business finds premises at a slightly lower cost. Everybody wins!

And the TPA campaign to reduce Business Rates is of course funded by the big guys who own shopping centres - instead of Poor Widows they wail about The Small Independent Retailer On The High Street, but if Business Rates were reduced, then the Big Guys would benefit FAR FAR MORE than the little guys (who would barely benefit at all, especially if they are tenants).

So there.

Thursday, January 17, 2013 12:22PM Report Comment
 

14. This comment has been removed as it was found to be in breach of our Blog Policies.

 

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