After going into administration in mid-January, Blockbuster UK is bouncing back after findin a buyer to keep it afloat.
Private equity firm Gordon Brothers Europe has purchased the retailer for an undisclosed sum. It plans to keep 264 stores across the UK open, saving more than 2,000 jobs.
Sadly, even with the jobs saved, the situation is still a bit grim. The equity firm will be closing 264 stores with 2,000 the loss of jobs, as customers move to digital rentals and purchases for movies and games.
"We acknowledge the industry is in transition; we know that we have a challenge ahead but there is still a market to be served," Frank Morton, CEO of Gordon Brothers Europe, told Reuters in a statement. The company will be making a substantial investment in its stores to return them to profitability.
The situation for Blockbuster is not unique. We've already seen Game, Comet, Play.com, Jessops and HMV being closed down completely or facing huge restructuring in recent months. Supermarket chains, online market places, and forms of digital media are blamed for many closures on the high street.
Pic: (cc) Betty Longbottom