March 7, 2018
The future of U.K. retail chain “That’s Entertainment,” which operates 29 stores selling DVD, Blu-ray Disc movies, music CDs and video games, reportedly is under review by corporate parent, Entertainment Magpie Ltd.
The chain was founded in 2007 and employs about 1,000 people with more than 4.5 million registered customers.
With the advent of Netflix and Amazon Prime Video, in addition to ecommerce, entertainment retail globally continues to take it on the chin.
“As a result, [corporate] is conducting an immediate review on the long-term viability of its ‘That’s Entertainment’ retail stores across the UK, which in the worst-case scenario would lead to the closure of all 29 current outlets by the end of May,” the company said in a statement last month.
Magpie said it continues to focus on ecommerce, which includes operating Decluttr.com in the United States enabling users to buy and sell packaged media and portable media devices online.
“Whilst online sales and our wholesale sales channels into both the U.K. and across the world have continued to grow, media sales through the retail estate have declined by circa 20% in the last year meaning the sizeable fixed cost base that comes with running a retail estate is something that is becoming increasingly difficult for the business to absorb,” said the company.
Citing the “huge impact” a shutdown of retail operations would have on staff, Magpie said any decision would be taken after “a great deal of consideration.”
“So, we are immediately entering into a period of group consultation to discuss next steps,” said the company.