Blockbuster sold to Gordon Brothers
While I must admit, I was hoping the creators of South Park would buy it, just for the laugh, Blockbuster, the video rental chain that has been left behind in the wake of DVD rentals by post, and eventually streaming content, has now been bought by Gordon Brothers Europe.
This will see a total of 264 stores saved for now, with administrator Deloitte set to hand over responsibilities to the new owners in the next month.
“Having identified a profitable core portfolio of stores we are pleased to have achieved this sale for creditors,” Deloitte administrator Lee Manning announced. “Together with the previously announced store sales more than half of the original estate has been secured for ongoing use.”
Of course this may not be the saviour that many of the stores need. We’ve seen with HMV and GAME that when chains are saved from going under, big changes need to be made in order to keep them afloat going forward. Often this means closing the least profitable outlets.
However in this case, a revolution of the business model needs to be made. Who rents DVDs or movies anymore? It’s just not feasible. When you can get a Netflix or LoveFilm account for £5-6 a month, why would you pay £2-3 a DVD?