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Blockbuster goes into administration - expert comment from Reading's Dr Steve Musson – University of Reading

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Blockbuster goes into administration - expert comment from Reading's Dr Steve Musson

Release Date 16 January 2013

It was announced this afternoon that DVD rental firm Blockbuster has been forced into administration. Dr Steve Musson, the University's expert in economic geography and the economic sustainability of UK towns and cities, comments...

Dr Steve Musson, University of Reading, said: "The recession has claimed another victim, and it's clear that it has no respect for tradition or past business reputation. I fear there may be more big-name British high street institutions to follow.

"The loss of Blockbuster is another blow to Britain's high streets and to the many thousands of people who work for the company.

"This business failure, following so close after HMV entering administration earlier this week, has been trailed for some time. Both have similar hallmarks. These are two well-known high street businesses which have suffered from the double pressures of changing technology - particularly the rise of downloads - and stiff competition from supermarkets and online businesses such as Amazon.

"The retail businesses that we have seen going into administration since Christmas have a lot in common - they have large numbers of stores, and have struggled to adapt to changing retail habits. Rents for retail businesses are usually payable quarterly, with many landlords most recently asking for payment at the end of December, which is why we often see retail failures coming in clusters."

Dr Musson has some availability this afternoon for interview. Please contact Pete Castle at the University of Reading press office on 0118 378 7391 for details.

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