More than 2,000 staff at the DVD rental firm Blockbuster have seen their jobs protected by an investment company that previously helped to rescue the Republic fashion group.
Gordon Brothers Europe has bought 264 Blockbuster shops threatened with closure. The company has struggled over the past few years as a result of online competition, but as recently as 2009 Blockbuster made a £4.6m pre-tax profit and still has 2.9m card carrying members.
Chief executive at Gordon Brothers Europe, Frank Morton said: “We know we have a challenge ahead but there is still a market to be served.
“Blockbuster has a strong brand affinity, and we believe that with the right mix of new products, new technologies, strategic management and marketing, we can bring new life to this high-street staple.”
Former UK and Ireland commercial director for HMV Gary Warren has been made Blockbuster’s managing director. He has worked for over 20 years in the retail sector.
Gordon Brothers was instrumental in rescuing Republic after it had gone into administration. As a result, Sports Direct acquired all 116 stores and other assets of the business, such as its headquarters in Leeds.
The problems facing the high street have been widely reported with a combination of adverse factors leading to record numbers of empty retail properties. Already this year there have been a number of high profile casualties adding to these unwelcome figures, so the news that the Blockbuster stores have been saved comes as a relief.
Gordon Brothers was established in 1903 and specialises in turning around troubled businesses. As well as the UK, it works in Germany the US and Japan.
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