Blockbuster heads for administration: Q&A; on your rights

Movie and gaming rental firm Blockbuster is on the brink of going into administration again, it's been announced today.

Blockbuster first hit trouble in January this year, when Deloitte was appointed as its administrator (see the Blockbuster latest to go into administration MSE News story).

In March it was bought by global private equity and investment company Gordon Brothers Europe, which tried to turn its fortunes around.

But now Gordon Brothers Europe plans to appoint an administrator for the stricken firm.

Below, we explain your rights if you're affected. We only have limited information from Gordon Brothers Europe at present, so come back tomorrow lunchtime for an update.

Q. Is the firm still trading?

Blockbuster's 264 stores will "continue trading as normal" while a buyer is found, although Gordon Brothers Europe adds that in the event a buyer can't be found, some stores may close.

The company employs 2,000 staff, although 32 redundancies will be made at the firm's UK head office as a result of today's announcement.

If you've been made redundant, you have statutory rights to redundancy pay and cash for unused holidays – this is met by the Government if Blockbuster itself can't pay. Read our Redundancy Guide for your rights.

Gordon Brothers Europe chief executive Frank Morton says: "Since the acquisition we have worked extremely hard to reignite the Blockbuster brand, make our investment work and put the business on a viable footing. 

"Despite our best efforts, we regret that we are now forced to make some redundancies and would like to thank any affected employees for their support during the last six months."

Q. Will gift cards be honoured?

Blockbuster currently sells gift cards, but these aren't traditional vouchers worth a monetary value that you spend. Instead its cards give you deals. For example, you can get two movies or games each month for three months for £16.

We're awaiting confirmation on whether Blockbuster is still honouring gift cards and will update this news story as soon as we hear anything.

However as the store is still trading, it's likely it will be. The last time the firm went into administration, it continued to honour gift cards while the store was still trading. Therefore, if you have one, it's best to try to redeem it as soon as possible.

Q. I've got store credit. Is this still valid?

Again, we're not sure if store credit is still being accepted, but as it's still trading as normal it should be. Last time the firm went into administration and continued trading, it continue to accept store credit.

So, don't waste any time trying to spend it.

Q. Can I take items back?

While Blockbuster's main business is renting out films, games and DVDs, it also sells them, along with other items such as consoles.

While we know Blockbuster is currently trading as normal, we're awaiting confirmation that this includes accepting refunds as usual and we'll update this news story as soon as we hear anything.

When the firm last went into administration, its standard returns policy continued, so if you've got something that needs returning, don't waste any time trying to do so.

Q. Will orders be delivered?

Again, while we know Blockbuster is trading as normal, we're awaiting confirmation that this includes delivering orders as usual. We'll update this news story as soon as we hear anything.

Q. Can I get a refund for faulty or undelivered items?

If something goes wrong, or it's confirmed that Blockbuster isn't offering refunds, then under Section 75 of the Consumer Credit Act, card firms are jointly liable with a retailer if something goes wrong, if the item you bought cost over £100. But most of what Blockbuster sells costs less than that.

So if you paid by credit card for goods under £100, or any amount on a debit card, you may be able to claim via the Visa, Mastercard or American Express chargeback schemes.

This is an often little-known clause that allows you to claim within 120 days from your card provider. While this is in your contract with your card provider, it's not a legal right.

If you did buy something over £100 with a credit card, then you should be covered under Section 75 of the Consumer Credit Act, giving you a legal right to claim from your card company.

Q. What if I have Blockbuster goods I rented, such as films and games?

You should return these as normal, on time, to avoid fines. The firm is still trading and these items do not belong to you.

Q. What happens to Blockbuster's loyalty scheme?

Blockbuster has a loyalty scheme called VIP Rewards where you earn points by spending, which you can redeem for rewards such as free movie rentals, money off vouchers and exclusive competitions.

We're awaiting confirmation on whether you can still earn and redeem points, but as Blockbuster is still trading as normal it's likely you'll be able to. So consider redeeming points now if you still can.

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