29/10/2013 14:14 GMT

Blockbuster Falls Into Administration For Second Time

A Blockbuster sign on a store is seen in Barre, Vt., Wednesday, Sept. 22, 2010. Troubled video-rental chain Blockbuster Inc. filed for Chapter 11 bankruptcy protection, and said Thursday, Sept. 23, it plans to keep stores and kiosks open as it reorganizes. (AP Photo/Toby Talbot)

Blockbuster Entertainment's new owner has said it is putting the DVD and computer games rental chain into administration for the second time this year due to tough trading, putting 2,000 jobs at risk.

Private equity group Gordon Brothers Europe said 32 jobs will be cut at the chain's Uxbridge headquarters, while 264 stores are at risk as a buyer is sought.

The chain plunged into administration in January, before being bought by Gordon Brothers in March. At the time of its initial collapse the group had 528 stores in the UK employing 4,190 staff.

Blockbuster is one of many big High Street firms to have come into trouble this year, including camera chain Jessops, music giant HMV and electrical chain Comet.


Gordon Brothers said its turnaround attempts for the historically loss-making company coincided with a patch of poor trading across rental and retail sales.

It said stores will continue trading but some may need to close if a buyer cannot be found.

"The company also tried to develop a new digital platform but was unable to broker a licensing deal with Blockbuster UK's parent company in the US.

"Regrettably, the months since the acquisition have also coincided with a period of poor trading performance across both rental and retail sales."