Private equity firm that bought the troubled video and games rental chain in March is now seeking another buyer as turnaround plan fails

Troubled video and games rental chain Blockbuster, which was sold to private equity firm Gordon Brothers Europe in March, is facing administration for the second time.

It initially collapsed in January after facing stiff competition from online streaming services such as Netflix and LoveFilm. Poor trading and other problems have led to Gordon Brothers seeking a new buyer for the business.

Gordon Brothers Europe said in a statement that it had "striven to turn around the historically loss-making company by restructuring the business, investing significantly in strategic marketing activities and negotiating with the landlords of its retail outlets".

MORE: Blockbuster to close 164 UK stores

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It added: "The company also tried to develop a new digital platform but was unable to broker a licensing deal with Blockbuster UK's parent company in the US.

"Regrettably, the months since the acquisition have also coincided with a period of poor trading performance across both rental and retail sales."

There will be be 32 redundancies at Blockbuster's UK headquarters, the company says, but its remaining 264 stores will continue to trade while a buyer is sought.

By Andy Clough

 

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