Blockbuster UK Finds Buyer, Half Of Stores To Close
It is merely been two months since Blockbuster UK announced that it had ended up in administration. That’s the UK’s version of filing Chapter 11. An investment bank called Gordon Brothers Europe has bought Blockbuster. The sum has not been disclosed. They’re reportedly going to keep it open, thus saving approximately 2,000 out of the 4,000 jobs that the DVD stores were providing. Only half of all stores will remain open, rest of them are going to be closed.
There are 528 Blockbuster DVD stores in the United Kingdom. That leaves 264 stores which will continue to function. While the investment bank has pumped in a new life in this chain, it remains to be seen exactly how they plan to turn it in to a sustainable business. The buyers add that they have identified a profitable core portfolio of stores. They’re aware of the challenges from market leaders such as Amazon and Netflix. Do you think the remaining Blockbuster stores will sustain themselves despite such tough competition, or do you think that Gordon Brothers Europe will offload it once they see that the stores are not making any substantial profits?
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