UK film and game retailer Blockbuster is facing administration for the second time this year after its new owner applied for protection while it seeks a buyer.
Private equity firm Gordon Brothers Europe, which bought the rental chain after US DTH…
UK film and game retailer Blockbuster is facing administration for the second time this year after its new owner applied for protection while it seeks a buyer.
Private equity firm Gordon Brothers Europe, which bought the rental chain after US DTH operator Dish Network placed it into administration in January, said plans to revive the historically loss-making retailer had coincided with tough trading conditions.
It also failed to broker a licensing deal with Dish’s Blockbuster LCC in the US, which owns the brand, for a new digital platform.
According to Gordon Brothers, efforts will now focus on “giving the company a chance of future survival through a reduced and different business model in the hope that a buyer will be found”.
Frank Morton, chief executive of Gordon Brothers Europe, said: “Since the acquisition, we have worked extremely hard to reignite the Blockbuster brand, make our investment work and put the business on a viable footing.
“Despite our best efforts, we regret that we are now forced to make some redundancies and would like to thank any affected employees for their support during the last six months.”
The company employs around 2,000 people, and the PE firm said 32 jobs will be cut at the chain’s London headquarters, while 264 stores are at risk as a buyer is sought.
At the time of its collapse into administration earlier this year, the group had 528 stores in the UK employing 4,190 staff.
Blockbuster has been hit hard in the UK by intense competition from supermarkets, as well as the shift from physical rental and sales to online games, music and films.
British supermarket chain Morrisons bought 49 of Blockbuster’s former stores in February under plans to expand its convenience store network.
