Entertainment retailer Blockbuster is to be put into administration for the second time in a year after a poor rental and retail sales performance.
Owners Gordon Brothers has filed a notice of intention to appoint an administrator for Blockbuster Entertainment.
Blockbuster originally collapsed in January and was then sold to restructuring specialist Gordon Brothers, which has said the business will once again be handed over to administrators.
Gordon Brothers said in a statement that since acquiring Blockbuster it has “striven to turnaround the historically loss-making company by restructuring the business, investing significantly in strategic marketing activities and negotiating with the landlords of its retail outlets” and by attempting to develop a new digital platform. The latter ambition was stymied by inability to reach a licensing deal with Blockbuster UK’s former parent company in the US.
Blockbuster operates 264 stores.
The statement continued: “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 need to significantly reduce costs whilst a buyer is sought will unfortunately 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.”
Gordon Brothers Europe chief executive Frank Morton 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.’