Blockbuster UK has gone back into administration and its online service has been suspended, as the owners admit its current business model is ‘outdated’.
Moorfields, the administrator for Blockbuster, said it has received a “small number” of expressions of interest but admitted that its business model was “outdated”.
The retailer fell into administration as its US counterpart closes its last stores.
Gordon Brothers, which bought Blockbuster out of administration in March, had tried and failed to broker a licensing deal to develop a new digital platform with US parent firm Dish. O’Reilly said that the failure to agree a deal was “one of the reasons it failed”.
Blockbuster currently employs around 2,000 people and operates a chain of 264 stores.
It comes a month after owner Gordon Brothers said its plan to turnaround the retailer’s fortunes failed amid the move towards online movie rentals and on-demand TV.
Joint administrator Nick O’Reilly, of Moorfields Corporate Recovery, said: “Gordon Brothers found the market place had changed quite dramatically.
“A lot of people want to rent online while the price of DVDs on places like Amazon is so cheap why rent for £3 when you can buy for £15?”
Blockbuster’s 264 stores will remain open while Moorfields looks for a buyer, with some expressions of interest already on the table.
Joint administrator Simon Thomas 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.”