Partner Article

Blockbuster close 72 stores – 452 jobs to go

Troubled home entertainment company Blockbuster has announced 72 stores will close, with 452 jobs to go.

The firm, which employs 2,000 people across 264 stores in the UK, says the move is “necessary” if parts of Blockbuster are to be saved and a buyer found.

The location of the stores to close are yet to be confirmed.

A statement from the firm’s administrators, Simon Thomas and Nick O’Reilly of Moorfields Corporate Recovery LLP, read: “Over the past few days our focus has been to assess the financial situation of Blockbuster in order to try and find a buyer for the business.

“As part of this process, we are today regretfully announcing the closure of 72 stores across the United Kingdom and the loss of 452 jobs.

“Since the acquisition by Gordon Brothers Europe in March 2013 the company has faced a period of poor trading performance across both rental and retail sales.

“This has not been an easy decision to make and we acknowledge that, with Christmas on the horizon, this will be extremely upsetting news to a large number of people most of all those affected by the store closures.

“We must reiterate that, as part of our attempts to turnaround the business, today’s decision is necessary if parts of Blockbuster are to be saved and a buyer found.

“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.

“Discussions with potential buyers for parts of the business continue and we hope to be in a position to update staff, creditors and customers shortly with a further statement within the next seven days.”

Blockbuster’s owner, restructuring specialists Gordon Brothers, bought about half of Blockbuster’s original UK chain in March and promised to invest substantial sums in a revival plan to protect around 2,000 jobs.

But earlier this year, Gordon Brothers admitted that its turnaround strategy had not worked because of a rapid switch to renting films online or via TV subscription services.

They failed to secure a crucial licensing deal with Blockbuster’s parent company in the US, which also recently filed for bankruptcy, to launch an online business.

This was posted in Bdaily's Members' News section by Martin Walker .