Blockbuster To Close Another 300 Stores
Blockbuster is closing 300 more stores. In the coming weeks, the movie rental chain will lay off approximately 3,000 workers. Blockbuster will be left with about 500 stores nationwide after the closures. As previously reported by The Inquisitr, the company also recently closed a multitude of stores in the United Kingdom.
The British arm of Blockbuster recently entered into bankruptcy, the Los Angeles Times notes. In 2011, Dish purchased the company and its 1,700 stores. Name recognition of the one-time movie rental standout was supposed to bolster online streaming services for Dish. The new owner also reportedly hoped the Blockbuster stores would boost Dish satellite service sales.
Some of the Blockbuster closings are due to ending leases agreements. A number of the video rental stores are closing due to poor performance. Dish has also struggled to maintain a blossoming customer base. The company lost 19,000 subscribers near the end of last year. The company was reportedly $158 million in the red during the third quarter of 2012.
Dish Network Corporation spokesman John Hall had this to say about the store closings:
“We continue to see value in the Blockbuster brand and we will continue to analyze store level profitability and as we have in the past — close unprofitable stores. Really, from the time of acquisition there has been a strategy to evaluate stores on a case-by-case basis in an effort to look at their production.
The Blockbuster stores will be closing on a staggered schedule as the building leases end. The dates and locations of the store closings have not yet been released. Last February, 500 Blockbuster stores were closed, the International Business Times notes. Dish bought the movie rental chain for $320 million.