Blockbuster enters administration for second time this year
Administrators Moorfields Corporate Recovery said yesterday that the retailer had attracted the interest of a number of potential buyers and that trading would continue as normal while a buyer is sought for the business.
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 retailer was subsequently acquired by private equity firm Gordon Brothers Europe in a deal which saved over 2,000 jobs and 264 stores.
Since then the Gordon Brothers has striven to turn around the historically loss-making company through restructuring, investment in marketing activities and negotiating rents with landlords. The company also tried to develop a new digital platform but was unable to broker a licensing deal in time.
Simon Thomas, joint administrator said: “This is obviously a difficult and upsetting time for everyone involved at Blockbuster, in particular employees who have endured a stressful period since January this year. We appreciate that staff and customers will want a speedy resolution, however, we must ask people to be patient over the coming weeks.
“We are pleased to say that there are parties who are interested in parts of the business. Our focus will be to secure a future for as much of the business as possible as well as trying to save jobs before Christmas.”
“We remain committed to being open and transparent during the intervening weeks, and will ensure that all stakeholders, in particular employees, are kept regularly updated about developments.”
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