Blockbuster set to fall back into administration

Chichester's Blockbuster might be at risk again
Chichester's Blockbuster might be at risk again
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CHICHESTER’S video rental store might be at risk of closure again, as the firm is set to enter administration for a second time.

Blockbuster entered administration initially in January, and the Bognor Regis store was closed as a result – but the Chichester store dodged the axe.

The future of the company is once again uncertain, as Gordon Brothers Europe which bought the firm in March, stated its intention to appoint an administrator on behalf of Blockbuster today (October 28).

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 has 264 stores and 2,000 staff, but will make 32 redundancies in the company headquarters as a new buyer is sought for the business.

The stores will remain trading as normal, including Chichester’s Market Road store, but Gordon Brothers Europe has said in the event that a buyer cannot be found some stores may need to close.

A statement from Gordon Brothers Europe said: “Since acquiring the assets of Blockbuster Entertainment Ltd and Blockbuster GB Ltd in March, the company has striven to turnaround the historically loss-making company by restructuring the business, investing significantly in strategic marketing activities and negotiating with the landlords of its retail outlets.

“The company also tried to develop a new digital platform but was unable to broker a licensing deal with Blockbuster UK’s parent company in the US. Regrettably, the months since the acquisition have also coincided with a period of poor trading performance across both rental and retail sales.”