Blockbuster in administration again - Doncaster store at risk

Major incident
Major incident

Doncaster’s Blockbuster DVD store is under threat yet again as the chain announced it is to go into administration for the second time this year.

Blockbuster’s owner, private equity firm Gordon Brothers Europe, announced the move into administration today.

The chain collapsed for the first time in January, after losing business to online firms streaming films over the Internet as well as offering rentals through the post

It was sold to Gordon Brothers Europe in March.

Gordon Brothers Europe said in a statement today that 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”.

It added: “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.”

The firm’s remaining 264 stores will continue to trade while a buyer is sought.

The company employs about 2,000 staff, about half the number it did at the time of the previous administration 10 months ago.