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Blockbuster shuttering 182 stores in 2011

updated 04:45 am EST, Tue December 21, 2010

Expected to emerge from bankruptcy

Blockbuster plans to close another 182 stores in the next few months according to a report. The move is part of a restructure designed to return the company to profitability under the protection of Chapter 11 bankruptcy, which it filed for in September. The latest closures come after the once dominant DVD rental giant also shuttered more than 2,000 stores over the past two years.

Blockbuster's decline and fall has been largely attributed to the rise of Netflix and Redbox vending machines. Apple's iTunes on-demand movie rental service is also thought to have had an impact. While the company tried to adjust its strategy and move into a internet video service backed by CinemaNow, it did not have the footprint that Netflix managed to establish. It also tried a mail service, which Netflix had successfully implemented, but because it had been so heavily dependent on its retail chain it could not compete with the selection that Netflix offered.

Once the restructure is completed, Blockbuster is expected to emerge from bankruptcy sometime in 2011 led by a new consortium backed by billionaire investor Carl Icahn.



By Electronista Staff
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  1. bubbasan

    Fresh-Faced Recruit

    Joined: Dec 2010

    +7

    Paybacks....

    I feel sorry for those that will lose their jobs, but I really can't weep for Blockbuster. When they came to my town in the early 90's, they ran 5 local mom and pop video stores out of business. Then they jacked up their rates and then kept poor stock with a mediocre selection.

    You get what you give...

  1. facebook_Clay

    Via Facebook

    Joined: Dec 2010

    -1

    Carl Icahn

    What a jackass! He can s**** up any business just because he has lots of money. I hope Blockbuster just closes its doors.

  1. easybrazilinvesting

    Banned

    Joined: Dec 2010

    +1

    Brazil Experience

    In Brazil, Blockbuster has sold their operations to a local retailer (Lojas Americanas). They have downsized the video stores a lot and they now sell a lot of other stuff. It became kind of a large convenience store. They are also getting into a Netflix-like mail delivery of videos. Let's see how that works.
    Here, they still face competition from piracy! I think they would be gone by now if they had not changed their business model.

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