Blockbuster UK has been pulled back from the brink of bankruptcy with private equity firm Gordon Brothers Europe riding to the rescue and acquiring the company’s business and assets. Blockbuster sought bankruptcy protection in January with Deloitte taking over the day-to-day operations and looking for a buyer. Financials were not disclosed, but Gordon Brothers said the 264 stores across the UK and Channel Islands will continue to operate on a business-as-usual basis, saving over 2,000 jobs. When Blockbuster first went into administration in January, it had 528 stores. Supermarket chain Morrisons bought 49 of them and about 200 were closed, BBC News notes. As with UK retail giant HMV, which has also sought bankruptcy protection, Blockbuster has faced stiff competition from online streaming services, which in the UK include Lovefilm and Netflix. Gordon Brothers said it will make “substantial investment” and fully utilize Blockbuster’s “existing trading platform, powerhouse brand and extensive customer database.” It intends to enhance “the customer experience through the use of new product offerings, new technologies and better basic retailing.” Gordon Brothers CEO Frank Morton said, “We acknowledge the industry is in transition; we know that we have a challenge ahead but there is still a market to be served.” In April 2011, Dish Network acquired Blockbuster Inc. in a bankruptcy auction for $320M. Blockbuster UK has operated separately from its parent, which in January said it would close 300 U.S. stores.
By NANCY TARTAGLIONE, International Editor | Sunday, 24 March 2013 09:13 UKTags: Blockbuster, Lovefilm, Netflix
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This article was printed from http://www.deadline.com/2013/03/blockbuster-uk-acquired-by-private-equity-group-gordon-brothers-europe/
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