Moorfields administrators close further 30 Blockbuster stores

BLOCKBUSTER ADMINSITRATORS from Moorfield Corporate Recovery are to close a further 30 stores at the DVD rental business, resulting in 182 job losses.

Simon Thomas and former insolvency trade body R3 president Nick O’Reilly were appointed joint administrators to TS Operations limited, which trades as Blockbuster, earlier this month.

Just days after their appointment the pair announced they would close 72 stores, resulting in about 452 job losses, as they sought a buyer.

At the time of its collapse Blockbuster had about 264 stores, and around 2,000 employees.

Thomas said: “It is unfortunate that we have been unable to secure a buyer to date, and therefore we have had to take the decision to make further store closures.

“We are continuing to review the profitability of the portfolio and may have to make further closures over the next couple of weeks. We appreciate this is a difficult time for all concerned and would like to thank staff for their ongoing cooperation.”

The administrators have listed the stores that are to close on their website, including Cardiff, Rugby, Bristol and Edinburgh. They have also listed retail job vacancies on their website to help the employees to find employment.

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 developing 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 it was sold to Tenon for £76m in 2010.