Blockbuster rescued by private equity group Gordon Brothers

 
Kasmira Jefford
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BLOCKBUSTER, the DVD and games rental chain, was rescued this weekend by restructuring firm Gordon Brothers Europe, two months after the struggling retailer collapsed into administration.

Deloitte, the business advisory firm that was appointed as administrator in January, said the deal will see Gordon Brothers keep 264 of Blockbuster’s 528 stores, safeguarding the jobs of nearly half of its 4,190 staff.

Deloitte did not disclose the amount paid by Gordon Brothers.

The new owners said it would be “business as usual” for the group and that the surviving shops will reopen under the Blockbuster brand, licensed from US satellite TV company Dish Network, which owns the US parent company.

Gordon Brothers Europe said it would make a “substantial” investment in the stores, offering new products to try to return the company to profitability.

“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, chief executive said.

The beleaguered chain wracked up £11.2m of losses last year, up from £8.5m in 2011.