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Last week, Blockbuster became the latest casualty of the administration epidemic sweeping the High Street; now, the first casualties are crawling home from the front line. 160 of Blockbuster’s 528 stores are to close, putting the livelihoods of some 760 staff at risk. Uh oh.
Deloittes, the administrators responsible for flogging Blockbuster off to the highest bidder, had already given notice of the closure of 31 stores last week; now, it looks like they’re starting to violently trim the fat from the whole operation. As one of the joint administrators put it:
“Having reviewed the portfolio with management, the store closure plan is an inevitable consequence of having to restructure the company to a profitable core which is capable of being sold.”
At least they’re being nice about it: Deloittes have set up a “dedicated employee helpline” and “an employee assistance programme to help those staff facing redundancy find other jobs”. Which, y’know, is nice of them, but still doesn’t really help the fact that they’re more than literally decimating the company. Still, with Jessops, HMV and Blockbuster all trying to escape administration at the moment, this is probably just the first minor loss we need to brace ourselves for over the next few weeks. Now, about that economic recovery? [BBC via Techradar]
I can’t help but think that the chaps at Deloittes are secretly enjoying themselves with all of the recent action…
They just feel a bit parasitic.
http://images2.wikia.nocookie.net/__cb20100702150415/simpsons/images/6/6a/Mr_Burns_evil.gif
I spend a fair bit of time working with Insolvency practices, and I’ve always found them to be pretty professional. Yes, they get paid to perform the administration, but its a job that has to be done and the insolvency profession is pretty highly regulated – they have to justify all their fees (There’s a regulation/reporting standard called SIP9 if you’re interested). Fees can’t be excessive (because the money’s coming from an insolvent company, so it’s not like there’s a lot of money floating about in the first place)
Big administration/insolvency jobs go to the big firms because you need a fair amount of resources to manage the process of communicating with thousands of creditors and unpicking every aspect of the business to work out what it owns and what it’s owed.
I understand that it’s a job that needs to be done, and clearly from what you’ve shared it’s all very professional and regulated but it’s just the way they go about it that bothers me.
It’s the messages they leave on the websites that have been shut down, it’s the press releases, it’s the quotes they drop etc.
It’s all VERY impersonal, corporate and legal. While I completely understand that this is essential content I know that their tone of voice could be a little less Pat Bateman and a little more sympathetic or understanding… more human and less robotic?
Point of information: If they were literally decimating the company, they’d close 10% of the stores.
Which is why they’re more than decimating it
Surely if they were literally decimating it they wouldn’t close any stores, just reduce staf costs by 10% with executions?
I have still got a Blockbuster Card in my wallet and it shall remain there for nostalgic purposes.
It will always remind me of the time I was about five or six years old and was running around a blockbusters store with my Thunderbird 2 toy, oblivious to the fact that I am pissing people off.
The toy was the one where the Cockpit opens and fits two figures and the hold drops down with Thunderbird 4 and had three buttons on the back that make noise. I still have it somewhere in the attic at my dad’s house.
Anyway, sad news for Blockbuster, again.
I’m hoping my Blockbuster’s goes just so we get a new shop in town.
Between people having the internet so they can easily get any film they want without going out, and most of the games this generation not even being worth renting. Who still needs a Blockbuster’s?