Play.com To Close Retail Business

Play.com has announced that it will close its retail business in March.

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Play.com has announced that it will close its retail business in March, according to NME.com.

The online entertainment retailer, which is one of the largest online retailers in the UK, will now operate more like a shopping centre and will no longer sell products such as CDs and DVDs to customers, the BBC reports.

The Jersey-based company blamed the end of the Low Value Consignment Relief tax loophole, which was closed by the government in April 2012, which allowed items of less than £15 to be sold to the UK VAT-free.

In a statement Play.com said: "Moving forward we are intending to focus exclusively on our successful marketplace, which is our main business area, and to phase out the direct-retail part of our business."

All 174 staff in its Jersey offices will be made redundant, as well as a further 67 in the retailer's Cambridge and Bristol offices.

Play.com was taken over by Japanese e-commerce operator Rakuten in September 2011. It paid £25m ($39.3m, 28.6m euros) for the company, which had 14m registered users.

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    thes50
    "The Jersey-based company blamed the end of the Low Value Consignment Relief tax loophole, which was closed by the government in April 2012, which allowed items of less than 15 to be sold to the UK VAT-free." So basically Play is blaming the closure of a Tax Loophole which shouldn't have been there in the first place?
    Nero Galon
    I and my bro used to buy from them quite a lot... Recently though since they decided not to sell their own stuff we've stopped buying from them... The site went downhill we thought.
    chrisa94
    yeah, when it was sold to the Japanese group things started changing. Pretty rubbish for me, (being from Jersey), no more free next-day delivery, have to wait for Amazon from the mainland now!
    smittyanthrax
    I used to enjoy play.com until they started letting sellers join and sell their goods.Was almost done out of 160 when a seller sold me a nintendo 3ds but never honored the sale.Plays customer services was well below par and had to wait almost a month for a refund.Prefer amazon.Shame tho as they had some decent deals from time to time.