DEATHWATCH: Blockbuster goes into administration AGAIN
Blockbuster is all set to go under for the second time this year, with 2,000 jobs at risk. The video rental shop's private equity owners decided it was a lost cause and announced plans to appoint an administrator.
Gordon Brothers Europe said efforts to salvage the firm had failed.
The 264 shops will stay open while administrators try to find a buyer and vultures will circle looking for some bargains in the fire sale.
What is so surprising is that this all happened less than 12 months since the last time the administrators were called in. Sadly, the field of play had drastically changed since Blockbuster open its doors in 1989. With the advent of Netflix and filesharing, there's little point of the company on the high street. It is cheaper to buy films from supermarkets, rather than loan physical copies from a shop.
Blockbuster’s Stateside parent company went to the wall in 2010, later rescued in a £200million deal.
Gordon Brothers cheif exec, Frank Morton, 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.”
Looks like this is the last call for Blockbuster.
TOPICS: High Street News