Blockbuster closing 300 more stores in the USBy Angel Cuala on Jan 22, 2013 in Business, Entertainment, United States •
Video rental company Blockbuster is closing 300 US stores that are suffering from declining sales, and will affect around 3,000 employees. The decision to close more stores in the country comes after 500 stores were closed back in February 2012 due to the same reason, which was also hurt by online competitors.
Image Credit: Blockbuster
As noted at Deadline.com on Monday, January 21, 2013, the 300 Blockbuster stores for closure represent around 35% of the remaining 850 stores in the US, with its headquarters located in Englewood, Colorado. However, the specific locations of the unprofitable stores to be closed were not mentioned.
“Some of the approximately 300 stores are reaching the end of their lease and others are closing based on overall performance,” Dish Network spokesman John Hall was quoted in the report, adding that Dish still sees value in the Blockbuster brand but will continuously analyze its level of profitability.
Incidentally, Blockbuster UK announced early this month that it will go into administration, which is the British equivalent of the Chapter 11 bankruptcy protection in the US. Last Saturday, BBC News reported that Blockbuster will be closing 31 of its 528 stores in UK and that around 760 employees will be affected.
Blockbuster, which filed for bankruptcy in September 2010 and was bought by Dish Network in April 2011 for around $238 million, was once a giant in the industry of movie video rental industry. During its peak in 2004, Blockbuster reportedly had a total of 60,000 employees, and had more than 4,000 stores worldwide.
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