Blockbuster to enter administration for second time this year
Entertainment retailer Blockbuster is to go into administration for a second time in ten months after seeing poor retail and rental sales.
Blockbuster originally fell into administration in January this year following its struggle against online competitors and the shift to digital streaming of movies and games in recent years.
The company was subsequently acquired by private equity firm Gordon Brothers Europe in a deal which saved over 2,000 jobs and 264 stores.
In a statement, Gordon Brothers Europe said it had striven to turn around the historically loss-making company through restructuring, investment in marketing, and negotiating rentals with the landlords. It also planned to introduce a new digital platform but was unable to do so after it failed to agree a licensing deal with Blockbuster UK’s parent company in the United States.
Never Miss a Retail Update!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.”
While 32 jobs will be cut at Blockbuster’s UK head office immediately, the retailer’s stores will remain open while a buyer is sought for the business.
