Cumbernauld Blockbuster's head on the block as the firm goes bust

Written by Scott Campbell.
Published at 16:42 on 12 November 2013.
E-mail usFollow usJoin us on FacebookMeet the team.



Cumbernauld's store is one of the last to remain trading. Picture: courtesy of Bill Henry.
 




Help Cumbernauld Media to grow and flourish; donate to help us stay online and cover the news that brings thousands to our web services each week.
Blockbuster have confirmed that they will be closing their Cumbernauld store next week. 

The news follows a statement by the DVD rental firm earlier this month that they were appointing restructuring firm Moorfields Corporate Recovery as the administrator of TS Operations, which trades as Blockbuster.

Two weeks ago Blockbuster announced it was to re-enter administration, putting 2,000 jobs at risk, with Simon Thomas and Nick O'Reilly of Moorfields Corporate Recovery appointed as the firm’s administrators.

In a statement from yesterday, the firm said: "In the last fortnight, efforts have been focused on finding a buyer to give the company a chance of future survival. Regrettably, no buyer has yet been secured for the business."

Only yesterday morning hopes were raised that the firm could be saved, after Simon Thomas indicated that “parties” were “interested in parts of the business”.

Mr Thomas said: "We are pleased to say that there are parties who are interested in parts of the business. Our focus will be secure a future for as much of the business as possible as well as trying to save jobs before Christmas."

Immediately after Mr Thomas’s statement was issued, however, it was announced that Blockbuster, had closed most of its 264 UK stores, leaving only 50 franchised outlets remaining, of which Cumbernauld is one

It is the second time this year that the firm have entered administration, private equity group Gordon Brothers Europe buying the firm in March, with a much anticipated recovery plan.

Gordon Brothers have since said, however, that their turnaround attempts had been hampered by poor trading across rental and retail sales, as well as the failure to secure a licensing deal with US company Blockbuster LCC, on a new digital platform. 

Gordon Brothers chief executive Frank Morton said his company had, "worked tirelessly to turn around Blockbuster UK with a raft of strategies and investments".

Customers of the Cumbernauld branch of Blockbuster have since received text messages confirming the closure, and urging them to take advantage of the 'Everything Must Go!' sale.
 
More business stories

PublishedHeadlineRead in full
11 September 2015 Cumbernauld Shopping Centre picks up environmental award http://www.cumbernauld-media.com/news/business/1435-cumbernauld-shopping-centre-picks-up-environmental-award 
24 June 2015 Modern Apprenticeships making a mark in North Lanarkshire http://www.cumbernauld-media.com/news/business/1375-modern-apprenticeships-making-a-mark-in-north-lanarkshire 
24 June 2015 Farmfoods seek permission to expand Cumbernauld HQ http://www.cumbernauld-media.com/news/business/1370-farmfoods-seek-permission-to-expand-cumbernauld-hq 
Showing 3 items from page Business news sorted by Published, Read in full. View more »