Not long after filing for administrative relief, a British form of bankruptcy protection, Blockbuster UK has announced the closure of 129 stores. The cousin to America’s Dish-owned Blockbuster LLC currently operates 528 locations.
Lee Manning with Deloitte, the risk management firm handling Blockbuster UK’s financial woes, issued the following statement:
“Having reviewed the portfolio with management, the store closure plan is an inevitable consequence of having to restructure the company to a profitable core which is capable of being sold . . . We would like to thank the company’s employees for their support and professionalism during this difficult time. We are also grateful to the customers for their continued support.”
Deloitte also stated that an employee helpline has been set up alongside an assistance program to help downsized employees find new jobs. Before the closings, BB UK employed more than 4,000 people.
Does this downsizing make BB UK more desirable to a prospective buyer? Is there an investor or company out there that is willing to take on the challenge of resurrecting the British Blockbuster?
[via Home Media Magazine]