Restructuring firm Gordon Brothers Europe has bought DVD rental retailer Blockbuster out of administration, taking 264 stores.
The restructuring specialist, which has acquired the business and assets of Blockbuster Entertainment and Blockbuster GB, has drafted in former HMV UK and Ireland commercial director Gary Warren, who becomes managing director.
Warren has over 20 years experience working in the retail sector and was vice-president of operations and product at HMV America and Canada from 2001 to 2005.
Gordon Brothers, which has made the acquisition through holding company TS 1973 Investment Holding, will make a “substantial investment” into the business. Deloitte was appointed administrator to Blockbuster in January.
Gordon Brothers Europe chief executive Frank Morton said: “We acknowledge the industry is in transition; we know that we have a challenge ahead, but there is still a market to be served. Blockbuster has a strong brand affinity and we believe that, with the right mix of new product offering, new technologies, strategic management and marketing, we can bring new life to this high street staple.”
Deloitte joint administrator Lee Manning said: “Having identified a profitable core portfolio of stores we are pleased to have achieved this sale for creditors. Together with the previously announced store sales more than half of the original estate has been secured for ongoing use. This transaction provides Blockbuster a future in the UK and we owe a special vote of thanks to all the Company’s employees, suppliers and customers for helping us rescue the business.”