Blockbuster returns to administration as digital revival fails

Blockbuster: set to go back into administration
Blockbuster: set to go back into administration

Blockbuster is set to enter administration for the second time in a year, after the latest owner admitted it had been unable to turn the struggling DVD and video games rental business around.

Blockbuster was sold in March to restructuring specialist Gordon Brothers Europe for an undisclosed sum in a deal that aimed to save 2,000 jobs, following its collapse into administration in January.

The new owners had attempted to invest in a new digital platform to help Blockbuster take on online rivals such as Amazon, but had failed to agree a licensing deal with the chain’s US parent company.

Despite having invested "significantly in strategic marketing activities", Gordon Brothers said it would now make 32 redundancies at its Uxbridge headquarters, adding that Blockbuster’s 264 stores were also under threat unless a new buyer could be found.

Frank Morton, chief executive 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."

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