Blockbuster in Administration to Cost Taxpayers £7m

Blockbuster's collapse will cost the taxpayer £7m following the multi-media rental group fell into administration twice in 2013.

According to a statement filed by Blockbuster's parent company, TS Operations Limited, HM Revenue & Customs (HMRC) will lose £2.1m (€2.5m, $3.4m) in VAT, PAYE and National Insurance contributions in addition to the £4.8m bill when Blockbuster first collapsed into administration in January.

Blockbuster was placed into administration in January earlier this year, but was rescued by investment firm Gordon Brothers Europe who purchased 264 stores in March 2013 for an undisclosed amount.

The UK became Blockbuster's largest business outside of the US, where it was born.

However, in December Blockbuster announced that it is to close its remaining 91 stores across the UK and exit from Britain's high-street after administrators of the embattled retailer failed to find a buyer for the company despite making various cuts over the last few months.

"It is with regret that we have to make today's announcement, we appreciate this is a difficult time for all concerned and would like to thank staff for their professionalism and support over the past month," said Simon Thomas and Nick O'Reilly, the joint administrators from Moorfields Corporate Recovery.

"Unfortunately, we were unable to secure a buyer for the group as a going concern and as a result had to take the regrettable action to close the remaining stores."

The move means a further 808 jobs will be lost, bringing the total staff casualties to more than 1,800.