MOORFIELDS CORPORATE RECOVERY administrators, of DVD rental retailer Blockbuster, have announced they are to close 72 stores.
Simon Thomas (pictured) and former insolvency trade body R3 president Nick O’Reilly were appointed joint administrators to TS Operations limited, which trades as Blockbuster.
Blockbuster operates one of the UK’s largest chains of film and game rental stores, with 264 stores and around 2,000 employees at the time of its collapse earlier this week.
The administrators said that they are to close 72 stores, which will result in the loss of about 452 jobs as it seeks to find a buyer for the business.
“As part of our attempts to turnaround the business, today’s decision is necessary if parts of Blockbuster are to be saved and a buyer found,” a statement from the administrators said.
This is the second administration for the business this year. It entered insolvency in January with 528 stores and 4,190 employees. Deloitte administrators were appointed and closed a total of 264 stores before selling it to Gordon Brothers Europe.
Gordon Brothers Europe tried to turn the business around by re-negotiating with landlords on retail outlets, investing in marketing strategies and trying to develop a digital platform. But poor trading in rental and sales has led to another administration for the business.
Moorfields Corporate Recovery was formerly the insolvency arm of RSM Bentley Jennison. Moorfields broke away when RSM was sold to Tenon for £76m in 2010.
Steve Absolom and Will Wright from KPMG Restructuring have been appointed joint administrators to City Motor Holdings and associated companies
Partners from Johnston Carmichael have been appointed as joint administrators to Axon Well Interventions Products UK
Begbies Traynor have been appointed administrators of William Anelay Ltd, York, one of Britain’s longest-established construction and heritage restoration companies
Smith & Williamson has been appointed administrators of charity 4Children