Blockbuster UK To Shutter 62 More Stores; Fate Of Remaining 91 Still Uncertain

This morning, Britain’s Chancellor of the Exchequer touted the UK’s falling unemployment rate as he delivered the Autumn Statement to Parliament. Unfortunately, he may have to recalculate his figures. A month after Dish Network said it would close Blockbuster‘s 300 remaining U.S. retail stores and distribution centers, Blockbuster in the UK is facing a similar fate. Moorfields Corporate Recovery, which was appointed administrator of the ailing video rental chain in November, said today that no acceptable offers have been received which means further closures ahead. Last month, Moorfields had already announced that 30 stores employing 182 people would close. Now, 62 more stores will shutter, eliminating 427 jobs. Moorfields added that it may be forced to close the remaining 91 stores, which would affect 808 employees. In January, Blockbuster UK sought bankruptcy protection with Deloitte acting as administrators. Then in March, the chain looked like it might get a reprieve as private equity firm Gordon Brothers Europe acquired the company‚Äôs business and assets. But Gordon Brothers was unable to orchestrate a turnaround and last month, Moorfields was appointed administrator. At the time, Moorfields said there were “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.”

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