Simon Thomas and Nick O’Reilly of leading restructuring and insolvency firm, Moorfields Corporate Recovery LLP, have today [11 November 2013] been appointed joint administrators of TS Operations Limited t/a Blockbuster.
Blockbuster operates one of the UK’s
largest chains of film and game rental stores, with 264 stores and
approximately 2000 employees. The company also offers a retail aspect to
their business and an online presence at www.blockbuster.co.uk.
The Blockbuster head office is in Uxbridge, and they had a regional
clerical office in Newcastle, which was closed just prior to the
Administration.
Gordon Brothers Europe acquired the
business and assets of Blockbuster Entertainment Ltd and Blockbuster GB
Ltd in March 2013. Since then the company has striven to turnaround the
historically loss-making company by restructuring the business,
investing significantly in strategic marketing activities and
negotiating with the landlords of its retail outlets. The company also
tried to develop a new digital platform but was unable to broker a
licensing deal in time. Regrettably, the months since the acquisition
have also coincided with a period of poor trading performance across
both rental and retail sales.
Whist the company is in administration,
every effort will be made to ensure retail trade continues as normal.
We encourage customers to visit stores and continue to rent and buy as
usual.
Commenting on today’s announcement,
Simon Thomas, Joint Administrator said “This is obviously a difficult
and upsetting time for everyone involved at Blockbuster, in particular
employees who have endured a stressful period since January this year.
We appreciate that staff and customers will want a speedy resolution,
however, we must ask people to be patient over the coming weeks.
We are pleased to say that there are
parties who are interested in parts of the business. Our focus will be
to secure a future for as much of the business as possible as well as
trying to save jobs before Christmas.
“We remain committed to being open and
transparent during the intervening weeks, and will ensure that all
stakeholders, in particular employees, are kept regularly updated about
developments.
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About Moorfields
Moorfields Corporate
Recovery LLP is one of the UK's leading independent firms of Corporate
Advisory, Restructuring and Insolvency Services. Our highly skilled
teams include restructuring professionals and licensed insolvency
practitioners who provide leadership, experience and high quality advice
to companies and their stakeholders in financially distressed
situations. Moorfields Corporate Recovery is proud to have been awarded
Corporate Recovery Firm of the year at the Insolvency and Rescue Awards
2012.