The troubled US video rental chain, Blockbuster, has put up its European division for sale.
The American parent company, Blockbuster Inc, has accumulated over US$1 billion (£660 million) in losses and wants to sell its European arm in order to raise some cash. This includes some 650 stores in the UK as well as stores in Ireland, Denmark and Italy.
Blockbuster was founded in 1985 and has been struggling with debt for over 10 years since it broke away from the US media conglomerate, Viacom.
In February, the company announced that its 2009 sales had dropped from US$5 billion to US$4 billion. Its losses rose by 50 per cent to US$560 million in the same period and its shares, which at one point were worth $28, are now only valued at 41 cents.
Blockbuster has appointed Winchester Capital, a US corporate finance house, to find a buyer for its European wing, estimated to be worth approximately £50 million.
In addition, the parent company is said to be assessing a change to its capital structure, following concerns from its auditor as to its viability as a going concern. It will also try to modernise its product offering by expanding its mail order and digital services.
