In the ongoing demise of the Blockbuster chain, administrators have announced another 62 stores are set to close resulting in the loss of 427 jobs.
The company entered administration in October, after the company continued to suffer from poor trading, despite new owners’ Gordon Brothers Europe turnaround efforts.
Simon Thomas and Nick O’Reilly, appointed administrators from Moorfields Corporate Recovery LLP, had continued their efforts to complete a sale of the company, but met with no success.
Having received “no acceptable offers,” it can be expected that the remaining 91 stores will also be closed by the end of the year, affecting a further 808 employees.
This would bring the total number of job losses to just over 1,200.
Anticipating the Chancellor of the Exchequer’s Autumn Statement, due today (5 December) Moorfields has urged the CGeorge Osborne to tackle the issue of business rates as retailers continue to struggle.
Thomas said: “We believe that the Chancellor should not only announce a freeze on current business rates but an acceleration of the review of rateable values.
“Even if as speculated the rates were capped at 2% Blockbuster would have faced an increase of £75,000 on an already sizeable £3.8m, a figure which highlights the significant hurdles facing retailers and pushing many over the edge.”