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More than 900 stores to be eliminated by 2010
Blockbuster Inc. (Dallas) may close up to 960 stores by the end of next year, according to The Dallas Morning News.
The company shared its real estate plans in a regulatory filing Tuesday relating to a private debt offering. According to The Wall Street Journal, the company expects a one-time net working capital benefit of $26 million from the closures. The company has not identified which locations will be closed.
Blockbuster, once the leading movie rental company, has been facing tough competition from Redbox, which rents films for $1 per night at automated kiosks, and Netflix's mail-order service. Blockbuster has added similar services, including mail-order rental, online and kiosk services, but hasn’t been able to expand such services quickly enough to offset dwindling revenue from its stores. The movie rental chain plans to introduce 10,000 Blockbuster Express kiosks by next year that offer movie and game rentals.
Last quarter, the company posted a $39.7 million loss. The company has 3750 stores and franchisees operate 606 more.
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