Guaranteed Rent | Jobs safeguarded as DVD rental chain Blockbuster finds a buyer
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A buyer has been found for troubled DVD and games rental chain Blockbuster, saving 2000 jobs and 264 UK stores.
Administrators from accountancy firm Deloitte announced the restructuring specialists Gordon Brothers Europe had purchased the company for an undisclosed sum.Guaranteed Rent
Blockbuster collapsed in January amid competition from internet firms and the digital streaming of films and games.
The firm has 66 stores in Scotland, employing around 330 people.
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.”
Hundreds of shops were shut in the weeks after its collapse on January 16.
Market analysts said Blockbuster had struggled to adapt to the changing market and rivalry from online retailers such as LoveFilm and iTunes, which now offers a movie rental service.Guaranteed Rent
The impact of the internet on Britain’s high street had already been laid bare with the demise of camera chain Jessops and electricals group Comet, which also cited competition from online players as a major reason for their downfall.
A spokesman said the 264 stores across the UK and Channel Islands will continue to operate on a “business as usual” basis.
“The company will focus on enhancing the customer experience through the use of new product offerings, new technologies and better basic retailing helping Blockbuster become a viable business once again,” the spokesman said.
Frank Morton, the CEO of Gordon Brothers Europe, said: “We are delighted to announce the acquisition of Blockbuster.
“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.
“We look forward to working with employees, suppliers, landlords and other stakeholders to make this happen.”
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