Blockbuster Video’s private equity owners have revealed their intention to seek administration advice for the troubled brand – the second time in ten months that the video rentals chain has faced potential corporate insolvency.
Gordon Brothers Europe purchased the Blockbuster brand and estate in March, for an amount that has not been disclosed, but have now said they are seeking administration advice once again.
A statement from the firm said: “Regrettably, the months since the acquisition have also coincided with a period of poor trading performance across both rental and retail sales.”
Stores will, for now, continue to trade while Gordon Brothers Europe seek a buyer to rescue Blockbuster from corporate insolvency for the second time in a year.
But immediate efforts to reduce operating costs are expected to lead to the redundancy of 32 individuals at the head office of Blockbuster UK.
In all, around 2,000 people are still employed by the chain across its 264 existing stores, but sales have suffered in part due to the uptake of online streaming technologies for film rentals.