Rental chain Blockbuster was bought by a subsidiary of Gordon Brothers, TS 1973 Investment Holdings Limited, in a move which has saved 2,000 jobs and 264 UK stores.
A spokesman said the stores across the UK and Channel Islands will continue to operate on a "business as usual" basis.
The deal has secured "substantial investment" for Blockbuster from Gordon Brothers, which said it intends to "fully utilise the existing trading platform, powerhouse brand and extensive customer database" of the high street chain.
The company will focus on enhancing the customer experience through the use of new product offerings, new technologies and better basic retailing helping Blockbuster become a viable business once again.
Sale of stores gives Blockbuster a 'future in the UK'
The joint administrators of Blockbuster have confirmed the sale of 264 stores to Gordon Brothers Europe, which is expected to save around 2,000 jobs. A statement said:
Having identified a profitable core portfolio of stores we are pleased to have achieved this sale for creditors.
Together with the previously announced store sales more than half of the original estate has been secured for ongoing use.
This transaction provides Blockbuster a future in the UK and we owe a special vote of thanks to all the Company's employees, suppliers and customers for helping us rescue the business.
Blockbuster used to have 528 stores across the UK Credit: REUTERS/Paul Hackett
The administrators of Blockbuster have confirmed they intend to close 164 stores in addition to the 168 stores previously put on notice of closure.
The decision means that around 800 staff are likely to face redundancy.
Closing stores will remain open for business as usual and customers will be notified in advance of closure so they can return rental items. There will also be a number of promotions across the stores.
All remaining branches of Blockbuster will continue to trade as usual.
Customers to be notified of Blockbuster store closures
Customers will be told if their local Blockbuster store is closing so they can return their rentals beforehand.
Deloitte, appointed as administrators on Wednesday, said stores will remain open for business as usual until this time. Lee Manning, joint administrator said:
The store closure plan is an inevitable consequence of having to restructure the Company to a profitable core which is capable of being sold.
We would like to thank the Company’s employees for their support and professionalism during this difficult time. We are also grateful to the customers for their continued support.
Administrators to Blockbuster have said they plan to close 129 stores over the coming weeks, in addition to 31 which had already been put on notice of closure.
The company has 528 stores. Administrators have announced 160 stores will close. Credit: Press Association
During this time there will be a number of closing down promotions across the stores.
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