Blockbuster Video in the U.K. has been saved from bankruptcy thanks to acquisition by Gordon Brothers.
It was announced in Jan. that the U.K. version of Blockbuster Video had filed for administration, the country’s version of chapter 11 bankruptcy. The day to day operations of the 528 stores and nearly 4,200 employees were taken over by Deloitte, which has cut some of the retail locations since that time.
Gordon Brothers announced today that it is acquiring the company and will keep the doors open. It plans to keep the remaining 264 stores in operation as well as retain the remaining 2,000 employees.
Frank Morton, CEO of Gordon Brothers Europe said of the acquisition, “We acknowledge the industry is in transition; we know that we have a challenge ahead but there is still a market to be served.” He went on to add, “Blockbuster has a strong brand affinity and we believe that with the right mix of newproduct offering, new technologies, strategic management and marketing, we can bring new life to this high street staple. We look forward to working with employees, suppliers, landlords and other stakeholders to make this happen.”
The U.K. branch of Blockbuster operates separately from the U.S. arm which is also currently going through its own financial turmoil. Dish Network, which bought Blockbuster in 2011, announced earlier this year that it would be closing 300 more stores on top of the 500 it had already shuttered.