Blockbuster Video have announced that they will be closing all of its 94 stores in Spain, resulting in the loss of 688 jobs.

According to a spokesman for the UGT trade union, the decision has been made for economic reasons in the face of competition from pirateers, digital TV providers, and changes in the way prefer to spend their free time, all of which has made the business unprofitable.

An agreement has been struck whereby workers will be compensated with between 24 to 35 days for each year of service.

The UGT spokesman also explained that they are waiting to hear from the company about future plans for the stores in case of possible employment opportunities for the sacked workers.