DVD-rental Company Blockbuster is to enter administration for a second time, its owner private equity firm Gordon Brothers Europe has confirmed.
Blockbuster went into administration for the first time in January, after losing business to online companies streaming films over the internet as well as offering rentals through the post. The group was sold to Gordon Brothers Europe in March.
Before its troubles began, the firm had 528 stores, 4,190 staff and 2.9 million regular customers.
In a statement, Gordon Brothers Europe said it had “striven to turn around 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.”
It said there would be 32 redundancies at Blockbuster Entertainment’s Uxbridge headquarters, while its remaining 264 stores would continue to trade while a buyer was sought.
The company employs about 2,000 staff; approximately half the number it did at the time of the previous administration 10 months ago.
Blockbuster is one of several High Street casualties to have come under pressure in recent times – particularly from online rivals.
Among them are camera retailer Jessops, which has gone into administration; music and DVD group HMV, which has closed 66 stores; and electrical company Comet, which closed its doors for the last time before Christmas last year.
