Blockbuster UK Has Been Saved

By Chris Mills on at

Britain's economy might be going tits-up, but there's one tiny pin-prick of light at the end of a very long tunnel: Blockbuster, one of the biggies in January's horror-show of business failures, is being saved from total doom. Huzza!

The ailing video lender is being flogged off to an investment company called Gordon Brothers Europe. Sadly, it's not all good news -- 264 of the firm's 528 stores will stay open, meaning that sadly, around half will be shut, along with a good 2,000 employees losing their jobs.

The administrators will re-open the shops with the Blockbuster name, but with a raft of new technology, presumably to compete with the likes of Netflix and Lovefilm. According to Frank Morton, CEO of the takeover firm:

"We acknowledge the industry is in transition; we know that we have a challenge ahead but there is still a market to be served."

Sceptical though I am that Blockbuster can be returned to profitability (I mean physical media -- does anyone actually use that any more?), it's good to see at least one of the ailing High Street retailers get back on its feet. [Reuters via CNET]