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Turnaround specialist snaps up Blockbuster

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27th Mar 2013
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DVD and games rental chain Blockbuster has been rescued by private equity group Gordon Brothers Europe just two months after it collapsed into administration.

The new deal will see Gordon Brothers keep 264 of Blockbuster’s 528 stores, safeguarding the jobs of nearly half of its 4,190 workforce.

On 16 January Deloitte partners Lee Manning, Matthew David Smith and Neville Kahn were appointed joint administrators to Blockbuster Entertainment Limited and Blockbuster GB Limited.

Manning, did not disclose the amount paid by Gordon Brothers, but said “having identified a profitable core portfolio of stores we are pleased to have achieved this sale for creditors” and added that “this transaction provides Blockbuster a future in the UK”.

The surviving shops will reopen under the Blockbuster brand, licensed from US satellite TV company Dish Network, which owns the US parent company.

Gordon Brothers said it would make a substantial investment in the stores, offering new products to try to return the company to profitability.

Chief executive Frank Morton said they were delighted with the acquisition and that Blockbuster has a strong brand affinity, however he added: “We acknowledge the industry is in transition; we know that we have a challenge ahead but there is still a market to be served.

“We believe that with the right mix of new product offering, new technologies, strategic management and marketing, we can bring new life to this high street staple,” he said.

The former HMV UK and Ireland commercial director Gary Warren has also been appointed as managing director of Blockbuster.

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By moneymanager
03rd Apr 2013 12:55

If at first....

'The former HMV UK and Ireland commercial director Gary Warren has also been appointed as managing director of Blockbuster'

Well that's all right then.

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