DVD rental chain Blockbuster goes into administration

Struggling DVD rental chain Blockbuster faces being broken up by Christmas after it formally went into administration yesterday - for the second time this year

Blockbuster
Blockbuster

Struggling DVD rental chain Blockbuster faces being broken up by Christmas after it formally went into administration yesterday - for the second time this year.

Corporate recovery specialists, who have now taken charge of its future, say parts of the business have attracted the interest of potential buyers - though some are only eyeing up store sites to be taken over as Morrisons did earlier this year.

Blockbuster announced two weeks ago that it intended to go into administration, putting 2,000 jobs at risk.

In a statement yesterday, it said: “In the last fortnight, efforts have been focused on finding a buyer to give the company a chance of future survival. Regrettably, no buyer has yet been secured for the business.”

Rents have been paid on many stores only until around Christmas Day meaning that any commitment to stay open beyond that period looks unlikely without a deal.

Blockbuster, which has 264 stores in the UK, went into administration in January, before being bought by private equity group Gordon Brothers Europe in March.

At the time of its initial collapse, it had 528 stores in the UK employing 4,190 staff - numbers that have since halved. It has also closed 300 stores in the United States.

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