The UK arm of DTH operator Dish Network’s Blockbuster film retailer has been bought out of administration by restructuring specialists Gordon Brothers Europe.
Financial details of the deal, which will save 2,000 jobs and 264 UK stores at the…
The UK arm of DTH operator Dish Network’s Blockbuster film retailer has been bought out of administration by restructuring specialists Gordon Brothers Europe.
Financial details of the deal, which will save 2,000 jobs and 264 UK stores at the troubled DVD and games rental chain, were not disclosed.
Administrators from Deloitte were brought in after Blockbuster collapsed in January amid competition from internet firms and the digital streaming of movies and games.
Joint administrator Lee Manning said: “Having identified a profitable core portfolio of stores we are pleased to have achieved this sale for creditors.
“Together with the previously announced store sales more than half of the original estate has been secured for ongoing use. This transaction provides Blockbuster a future in the UK and we owe a special vote of thanks to all the company’s employees, suppliers and customers for helping us rescue the business.”
The Blockbuster brand will be licensed from US-based Blockbuster LLC.
Back in 2011 Blockbuster entered Chapter 11 bankruptcy protection in the US, and was later acquired by Dish in a US$320m deal. The UK arm of the rental firm had also been owned by Dish, although it was run separately.
The UK unit had around 528 stores before entering administration, but hundreds were shut in the weeks after its collapse.
Blockbuster struggled to adapt to the changing market and rivalry from internet retailers including Netflix, Amazon’s LoveFilm and iTunes, which now offers a movie rental service.
The rental chain was acquired by a subsidiary of Gordon Brothers, TS 1973 Investment Holdings Limited.
A spokesman said the remaining 264 stores across the UK and Channel Islands will continue to operate on a “business as usual” basis.
The deal has secured “substantial investment’” for Blockbuster from Gordon Brothers, which said it intends to “fully utilise the existing trading platform, powerhouse brand and extensive customer database’” of the high street chain.
Frank Morton, CEO of Gordon Brothers Europe, said: “We are delighted to announce the acquisition of Blockbuster.
“We acknowledge the industry is in transition; we know that we have a challenge ahead but there is still a market to be served. Blockbuster has a strong brand affinity and we believe that with the right mix of new product offering, new technologies, strategic management and marketing, we can bring new life to this high street staple.
“We look forward to working with employees, suppliers, landlords and other stakeholders to make this happen.”
