DVD and game rental chain Blockbuster is to enter administration for the second time this year, according to owner Gordon Brothers.
TS Operations Ltd, a subsidiary of TS 1973 Investment Holdings Limited which trades as Blockbuster in the UK and is owned by a subsidiary of global private equity and investment company Gordon Brothers Europe, today announced it is to file a notice of intention to appoint an administrator on behalf of Blockbuster Entertainment Ltd.
Blockbuster collapsed into insolvency in January after facing serious competition from online rental and video streaming competitors, before being acquired by the subsidiary of Gordon Brothers Europe in March.
A statement from Gordon Brothers said that despite the efforts to “turnaround the historically loss-making company by restructuring the business” Blockbuster suffered from “a period of poor trading performance across both rental and retail sales.”
The statement also detailed an attempt to develop “a new digital platform” to compete with other online video streaming services, although the owners were “unable to broker a licensing deal with Blockbuster UK’s parent company in the US.”
Frank Morton, CEO 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.”
The company currently employs 2,000 employees across 264 stores in the UK – 32 staff from its head office will be made redundant in an effort to “significantly reduce costs whilst a buyer is sought” according to the owners. Blockbuster stores will continue to trade while a buyer is sought.