UK high streets are to suffer another blow as DVD rental chain Blockbuster is set to go into administration for the second time.
The chain went into administration in January of this year before being sold to private equity firm Gordon Brothers Europe who cited “poor trading performance across both rental and retail sales” as the reason for its second collapse.
When the chain went into administration the first time, half of its 528 branches were closed with 49 sites bought by Morrisons to boost its M Local estate and Sainsbury’s also targeting stores in London and the South East to help grow its convenience arm. With the majority of these sites located on high streets, it created further pressure for independent retailers with competition from the multiples opening up nearby.
Although all remaining 264 stores will continue to trade while a buyer was sought, Goldman Brothers Europe did not rule out closing stores if one could not be found.
No comments yet