Administrators to Blockbuster have today (14 November) announced that 72 stores are to close and 452 staff are to be made redundant.
The DVD and video games rental company entered administration last month (October) despite a turnaround effort by owners Gordon Brothers Europe.
Simon Thomas and Nick O’Reilly of Moorfields Corporate Recovery, appointed as joint administrators to the company, have today issued a statement detailing UK store closures and redundancies.
The statement said that as part of the process of finding a buyer for the business “we are regretfully announcing the closure of 72 stores across the United Kingdom and the loss of 452 jobs.”
“This has not been an easy decision to make and we acknowledge that, with Christmas on the horizon, this will be extremely upsetting news to a large number of people most of all those affected by the store closures.
“We must reiterate that, as part of our attempts to turnaround the business, today’s decision is necessary if parts of Blockbuster are to be saved and a buyer found.
“We remain committed to being open and transparent during the intervening weeks, and will ensure that all stakeholders, in particular employees, are kept regularly updated about developments.”
Prior to entering administration, the company operated 264 stores across the UK employing approximately 2,000 staff.
Blockbuster previously collapsed into insolvency in January 2013 after facing serious competition from online rental and video streaming competitors, before being acquired by the subsidiary of Gordon Brothers Europe in March.