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Xbox One and PS4 pre-orders won't be upheld as Blockbusters UK enters administration for second time

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Blockbuster has confirmed it won't be able to uphold any Xbox One and PS4 pre-orders after it announced it has gone into administration for the second time this year.

The UK DVD and video games retailer originally entered administration in January due to increased competition from online retailers and was sold to private equity firm Gordon Brothers Europe in March.

Now the high-street retailer has entered administration for the second time.  Its owner says it has “striven to turn around the historically loss-making company by restructuring the business, investing significantly in strategic marketing activities and negotiating with the landlords of its retail outlets.”

Before it entered administration in January, Blockbuster UK had 528 high-street stores to its name.

The company also tried to develop a new digital platform but was unable to broker a licensing deal with Blockbuster UK’s parent company in the US. Regrettably, the months since the acquisition have also coincided with a period of poor trading performance across both rental and retail sales.”

Blockbuster UK has also announce it will not be able to "fulfil" any Xbox One or PS4 pre-orders at this time.

""We are sorry that you will be disappointed and that we can't fulfil any Xbox One or PS4 pre-orders at this time," reads a flurry of official tweets.

Anyone who has placed a PS4 or Xbox One pre-order with the retailer will be getting a call imminently.

"We're sorry some of you haven't received your calls yet. They're happening as we type," read another official tweet.

Currently the Blockbuster stores number 264, all of which will continue to trade while a new buyer for the company is sought. There will be 32 redundancies made at the Blockbuster UK headquarters.

Blockbuster UK employs 2,000 staff across the country, but this figure is around half of those previously employed by the company before the original administration period 10 months ago.

Unfortunately, Blockbuster UK isn’t the only high-street retailer to feel the pressure from online competition. Other casualties already include Comet, HMV and Jessops.

In February, camera chain Jessops was purchased by entrepreneur Peter Jones of Dragon’s Den fame. The high-street store now only operates as a online camera retailer.

Restructuring specialist Hilco purchased HMV in April, saving 2,500 jobs with the company buying 141 stores across the country.

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Via: BBC

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