Morrisons buys 49 Blockbuster stores

Supermarket chain Morrisons has acquired 49 Blockbuster UK stores, which it intends to use as locations for its Morrisons M brand of local convenience stores.

"This transaction represents a good deal for both the creditors of Blockbuster and Morrisons and we are pleased that these stores have found an alternative user that can create new employment," said Deloitte's Lee Manning.

"This group of stores forms a proportion of the Blockbuster package announced for closure earlier this week and is expected to be the first of a number of group and individual store transactions to arise from the Blockbuster portfolio given the significant levels of occupier interest for many of the assets".

Entertainment rental chain Blockbuster UK went into administration in January, and so far Deloitte has closed 324 of the company's 528 retail stores. Morrison's meanwhile has already acquired seven stores from another troubled UK high street brand, camera shop Jessops.

"We are rolling out the Morrisons M local estate at pace this year and these acquisitions give us a kick start in securing a solid foothold in this key sector," added Morrisons Convenience MD Gordon Mowat.

"The convenience market is growing as more people shop locally and we want to be in a position to take advantage of this."