December 13 2013 Latest news:
Tuesday, October 29, 2013
DVD rental chain Blockbuster Entertainment is to fall into administration for the second time this year after suffering from poor trading, its private equity owner Gordon Brothers Europe said today.
Around 2,000 jobs across the company’s network of 264 stores are at risk, with 32 posts at its Uxbridge headquarters being axed with immediate effect.
Blockbuster was acquired by Gordon Brothers Europe in March this year, two months after it last fell into administration.
Gordon Brothers said its turnaround attempts for the historically loss-making company had coincided with a patch of poor trading across rental and retail sales.
It said the stores would continue trading for now but some may need to close if a buyer could not be found.
In January, the then administrators, from Deloitte, said Blockbuster’s collapse had been driven by competition from internet firms and digital streaming of movies and games.
Around half of the company’s original network of 528 stores were closed during the administration period, with the loss of about 2,000 jobs, although a similar number of jobs were saved by the sale of the remaining stores to Gordon Brothers.
Of the sites closed, 49 were acquired by supermarket group Morrisons as part of the roll-out of its M-Local convenience store brand.
Blockbuster’s current network of outlets includes sites in Ipswich, Felixstowe, Lowestoft, Mildenhall, Newmarket, Halstead, Braintree, Colchester, Clacton and Chelmsford.