Blockbuster back in administration
Blockbuster today went back into administration for the second time in 2013.
The company was sold to Gordon Brothers Europe in March, but the company today said in a statement that Blockbuster had again gone into administration despite having "striven to turn around the historically loss-making company by restructuring the business, investing significantly in strategic marketing activities and negotiating with the landlords of its retail outlets".
The company has been badly hit by online streaming and rental services.
Gordon Brothers Europe added: “The company also tried to develop a new digital platform but was unable to broker a licensing deal with Blockbuster UK's parent company in the US.”
More to follow.
UPDATED: Frank Morton, CEO 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."
Gordon Brothers Europe added that efforts will now be focused on giving the company a chance of future survival through a reduced and different business model in the hope that a buyer will be found. The company revealed that the need to significantly reduce costs whilst a buyer is sought will result in 32 redundancies at Blockbuster UK’s head office. All stores will continue trading as normal whilst a buyer is sought for the business. In the event that a buyer cannot be found some stores may need to close.