MORE than 100 employees working for Blockbuster in the North East could lose their jobs.
The DVD and games rental firm collapsed, with administrators Deloitte blaming the firm’s trading woes on competition from internet firms and digital streaming of movies and games.
The company employ around 120 people in its 24 stores in the region.
Deloitte stressed that Blockbuster’s core business – which still has two million active members – was profitable and they would keep all 528 stores open while seeking a buyer.
But it has struggled to adapt to the changing market and rivalry from Internet retailers such as Netflix, Amazon’s LoveFilm and iTunes, which now offers a movie rental service.
Its administration comes just a day after 223-strong music and entertainment chain HMV went under, following dismal Christmas sales.
The 92-year-old business, which employs more than 4,120 employees, was squeezed by internet retailers and supermarkets, whose scale enabled them to offer CDs and DVDs at cheaper prices.
Deloitte is handling both administrations.
This week’s casualties add to a recent run of retailers to collapse, following the demise of camera chain Jessops and electricals group Comet, which also cited competition from online players as a major reason for their downfall.
Professor Ajay Bhalla at Cass Business School said the administration of Blockbuster was “yet another harsh reminder of the fast-changing retail environment”.