Blockbuster administrator Moorfields said it has received a “small number” of expressions of interest but admitted that its business model was “outdated”.
The retailer fell into administration as its US counterpart closes its last stores. Blockbuster UK joint administrator Nick O’Reilly told Retail Week: “The fact that [its US parent firm] has taken a procedure to close a large number of stores shows that the DVD rental model is outdated. Anyone buying the business as a whole would be looking at an online platform.”
Gordon Brothers, which bought Blockbuster out of administration in March, had tried and failed to broker a licensing deal to develop a new digital platform with US parent firm Dish. O’Reilly said that the failure to agree a deal was “one of the reasons it failed”.
It is unclear whether a new buyer would be able to strike an agreement with Dish.
O’Reilly said it was still hoping to sell Blockbuster as a going concern but admitted “the fact it has gone into administration twice in 12 months is not going to make it easy.”
He said that he hoped that Moorfields appointment would “flush out” some more would-be buyers and that it would explore all avenues, including property deals. When Blockbuster fell into administration earlier this year, Morrisons acquired 49 of its stores.