Blockbuster and Barratts teetering on the brink
It would appear that two more well known names could be disappearing off our High Street soon. With Blockbuster and Barratts both going into administration earlier this month all hopes now rest on buyers being found. There is still some hope for survival but the likelihood is that even if they both see off this latest round of administration, there will be significantly less stores in the future.
Both companies have been here before. Earlier this year Blockbusters went into administration and Barratts has been put into administration 3 times in the last 5 years. It is a sign of the times that brands with business models that struggle to compete with on-line competitors will continue to suffer on the High Street. Over the last 12 months we’ve seen HMV, Jessops and Comet all fall by the wayside because of trading conditions and on-line competition.
It has clearly been a roller-coaster time for the staff at both these companies and the recent announcements put 3,000 jobs at risk with some redundancies looking almost inevitable.
In the case of Blockbuster, it is companies like LoveFilm and Netflix who have stolen a march on them. Both LoveFilm and Netflix have been quicker to adapt to online rental and Blockbuster has lost significant market share to them. With regards to Barratts’ repeat encounters with administration, the main reason is extremely tough trading conditions, with your average punter still not spending and the amount of shops and concessions it has. Barratts has 75 stores and 23 concessions all of which have big rents to pay. Barratts has to sell a lot of shoes to cover these rents and this is simply not happening at the moment.
Administrator’s looking to sell
The administrators at both Blockbuster and Barratts will be trying to secure the future for as much as the business as possible through seeking new buyers, negotiating rents, and trying to save as many jobs before Christmas as they can.
Both companies have seen potential buyers and investors come and go in recent times and it will take a brave company with a strong vision for the future to rescue them. Let’s hope they find such a company.
If you know of a company in need of help or a pre pack administration please get in touch.