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Retail

Blockbuster UK "in very good shape"

Fri 19 Mar 2010 12:01pm GMT / 8:01am EDT / 5:01am PDT
Retail

US bankruptcy would have "no operational impact" on British chain

Blockbuster UK has dismissed rumours that the company will be adversely affected by the potential bankruptcy of Blockbuster in the US insisting that its business is in "very good shape".

Although the parent company in the US has suffered years of declining sales and is currently rumoured to be close to bankruptcy, subsidiaries in other countries are generally run as separate companies.

Martin Higgins, managing director for Blockbuster UK said: "It is important for me to emphasise that Blockbuster UK is a separate legal entity, which is well-run and in a healthy financial condition with solid equity and no debt beyond normal accounts payables."

"In the unlikely event that our parent company in the US goes bankrupt, it would have no operational impact on Blockbuster UK. The UK management is 100% focussed on maintaining the best interests of Blockbuster UK, and I remain confident that we can continue to have a healthy business in the UK in the years to come."

Higgins points out that in 2009 Blockbuster UK increased its rental revenues and saw profits increase by 18 per cent, in part due to increased demand for Blu-ray discs.

In recent years the company has increased its focus on videogame rentals across all formats, as well as retail sales of both software and hardware.

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