Blockbuster Has 59 Choices

Blockbuster video rental chain has bought 59 stores from the administrators of music and DVD chain Choices U.K.

Nearly 2,000 jobs were put in jeopardy after Choices, the country’s second-biggest video hire company behind Blockbuster, decided to go into administration after failing to reach a refinancing package with Lloyds TSB bankers.

It’s not clear how many jobs can be saved by Blockbuster buying about a third of its 170 stores.

The DVD rental market has suffered a similar sort of downturn to the CD retail business as both have been hit by piracy and increased competition from online companies.

Low-cost music chains including MVC, MusicZone and Fopp have collapsed over the course of the last year, and even larger businesses such as HMV and Virgin Megastores are feeling the pinch.

Choices was said to be in the middle of a restructuring plan to close 50 stores after a sharp downturn in trading. It was expected to run up losses of £4.6 million this year. Debts are thought to total £13 million.

In the spring the company’s share price tumbled to 50 pence as Skitt warned that it was going to "substantially" miss its financial targets.

Choices U.K. shares were suspended at 10.25 pence, valuing the group at £1.9 million. They were trading at 240 pence at the end of 2003.