Blockbuster Is Broke Again and Going Back Into Administration

By Gerald Lynch on at

Even the purse-tightening investment team at Gordon Brothers Europe has failed to turn around struggling movie and game rental veterans Blockbuster, with the company announcing it is entering administration for the second time in a year. It's looking like this time really could be the end for the once-mighty high-street store.

Gordon Brothers Europe, which bought Blockbusters after its first administration in January, called the franchise "historically loss-making", and cited an inability to secure a digital license deal that Blockbuster's US arm has found moderate success with as one of the primary causes of this second financial fall.

2,000 staff (half the number that Blockbuster employed before the first administration) now have their jobs hanging in the balance. 32 redundancies at Blockbuster's UK head office have been confirmed already, though the franchise's 264 stores will remain open while a new, fearless buyer is sought. [BBC]