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Store administrations causing High Street headache
7:30am Friday 22nd February 2013 in News
HIGH street shoppers have been dealt a double blow after one store announced it would close while another might shut.
Administrators Deloitte revealed the Blockbuster shop in Springfield Road would be one of 164 units from the home entertainment rental chain which would close across the UK over the next few weeks.
The announcement shortly after accountants from Ernst and Young were called in to run clothing store Republic which has a store in the High Chelmer Shopping Centre.
Neil Gulliver, Chelmsford councillor responsible for planning and economic development, said it is disappointing to hear of the two firms’ financial struggles.
He added: “Republic was a profitable company a few years ago when it was taken over by an investment group so it seems they have rapidly moved from success to financial failure.
“Blockbuster is more a victim to social change because we are using the internet and so many other ways to get movies and games which are cheaper as well.
“It will be sad to see Blockbuster disappear and I just hope something will come in to replace it quickly which will bring jobs back to the city centre.”
Last month the Blockbuster in Chelmsford was given a temporary reprieve by accountants after it was not included on a list of 129 stores which would close.
Promotions will be done at the store in a bid to get rid of stock.
Shoppers from Chelmsford said they were not shocked to hear the store would be closing.
Christian Davies said: “I am not surprised Blockbuster is going because Netflix and Love Film are taking over now, so no one pops out for a film any more.”
Leeds-based Republic formed in 1986 and went through an expansion ten years ago but has seen sales fall in recent years.
Stores from the company will stay open for the time being while a buyer is sought.