Leading restructuring and insolvency experts Moorfields Corporate Recovery appointed Administrators over Blockbuster
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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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.
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