Blockbuster UK has called in administrator Deloitte. What does this mean to customers with rented DVDs and store credit?
The rental firm Blockbusters has followed HMV and Jessops into administration, announcing it has appointed Deloitte to try and find a buyer for its 528 stores around the country. What does this mean for customers?
Do I have to return my DVDs?
Yes you do. The shops are operating as normal and you will start accruing fines if you try to keep hold of items you’ve borrowed. Any buyer of the chain will be quite keen to get that stock back so you shouldn’t bank on getting away with keeping that copy of Men in Black 3.
Can I use my gift vouchers?
The administrator has said it will honour any vouchers given to customers and any store credits they have built up while it tries to find a buyer for the chain.
“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,” says Lee Manning, joint administrator and partner in Deloitte’s Restructuring Services practice. “During this time gift cards and credit acquired through Blockbuster’s trade-in scheme will be honoured towards the purchase of goods.”
The store credits are part of a scheme Blockbuster runs which allows customers to trade items in and chose between cash and store credit, with the value of store credit being higher.
Do I need to spend them straight away?
A spokesman says it is likely to be business as usual at Blockbuster for a “matter of weeks” rather than days while a buyer is sought, but you might want to cash in your vouchers or credit sooner rather than later to be on the safe side.
The spokesman says during that time he does not expect Blockbuster to sell any more gift cards or offer any new store credit.
There is a customer query line on +44 (0)207 303 0862.