A subsidiary of private equity group Gordon Brothers Europe has acquired the business and assets of Blockbuster Entertainment and Blockbuster GB Limited.
The subsidiary – TS 1973 Investment Holdings – said a total of 264 stores would operate normally as a result of the transaction – Half the original number of stores (528) operating when the business first went into administration.
In a statement to the press, Gordon Brothers Europe said it would provide ‘substantial investment’ to ‘fully utilise’ the existing brand and customer database.
Gary Warren has been appointed as the new managing director of Blockbuster. Warren was previously commercial director for HMV UK for 25 years until July 2011 when he was replaced by Michael Neil.
Frank Morton, chief executive officer of Gordon Brothers Europe, said that the industry was in a state of transition – acknowledging the change in customer behaviour to online rentals.
He added: “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.”