Joint administrator Deloitte has confirmed the sale of Blockbuster UK for an undisclosed sum.
Following the brand’s slip into administration just over three months ago, Deloitte has announced it has completed the sale of Blockbuster UK to investment firm Gordon Brothers Europe.
The deal will see the firm maintain the Blockbuster brand license as it takes on 264 of the retailer’s UK stores, saving close to 2,000 jobs.
However, the move will see the brand severely downsized. Despite the new deal, close to 2,000 Blockbuster staff are set to be cut as the brand’s retail presence is reduced from its former 528 strong store count.
Gordon Brothers Europe has emphasised its intentions to maintain the brand, and that the move to downsize the brand is part of a greater effort to keep the Blockbuster name on the UK High Street.
“Having identified a profitable core portfolio of stores we are pleased to have achieved this sale for creditors,” joint administrator Lee Manning stated. “Together with the previously announced store sales more than half of the original estate has been secured for ongoing use.
“This transaction provides Blockbuster a future in the UK and we owe a special vote of thanks to all the Company’s employees, suppliers and customers for helping us rescue the business.”
Gordon Brothers has also revealed it has appointed former HMV man Gary Warren as the new managing director for Blockbuster.
Best known as HMV UK and Ireland’s commercial director, Warren will take over the position with Blockbuster and oversee the brand’s remaining stores.