Blockbuster UK was recently sold the the private equity group Gordon Brothers Europe.
The firm acquired the business and its assets in the deal. This means that the 264 stores across the United Kingdom will remain open for business. Nearly 2,000 jobs were saved as a result.
Blockbuster UK previously had 528 stores in the region before heading into administration last January. The company was forced to close 200 locations in order to stay afloat. Supermarket chain Morrisons reportedly purchased 49 stores before Gordon Brothers Europe swooped in.
The equity group is known for helping out companies that are on the cusp of closing down. Although little is known about the deal, the company intends to keep things running just as they are for the time being.
Gordon Brothers Europe intends to make some changes to Blockbuster UK at some point down the road. This will reportedly involve “new products” and “new technologies” designed to draw people back to the stores.
“Having identified a profitable core portfolio of stores we are pleased to have achieved this sale for creditors,” administrator Lee Manning explained. “Together with the previously announced store sales more than half of the original estate has been secured for ongoing use.”
“This transaction provides Blockbuster with 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,” Manning added.
Blockbuster UK is just one of several entertainment stores that are struggling to stay afloat these days. Fellow retailer HMV also went into administration earlier this year. British Retail Consortium director generalStephen Robertson believes a combination of factors have lead to recent troubles.
“Financial challenges for both customers and retailers are far from over,” he explained. “Many retailers are battling stagnating sales and rising costs.”
Private equity group Gordon Brothers Europe didn’t disclose how much money it paid for Blockbuster UK. It’s also currently unclear when the group intends to make changes to its stores.
[Images by Wikimedia Commons]