Movie rental giant Blockbuster will close 180 stores by the end of the first quarter, the company said. The retailer did not disclose specific stores to be closed.
Since filing for Chapter 11 bankruptcy protection in September, the Dallas-based company has shuttered 58 stores.
Before its filing, Blockbuster operated 3,425 stores nationwide, of which 402 were franchise locations. Worldwide, the chain had more than 6,500 stores as of Jan. 20.
Several Kansas City-area Blockbuster stores have closed; the company’s website lists about 30 area locations.
“As we’ve said all along, one of Blockbuster’s key objectives during the recapitalization process is to maximize the profitability of our store portfolio by carefully analyzing each store location and, in many instances, negotiating appropriate rent concessions with our landlords,” the company said in a statement. “This will lead to store closings in cases where we are unable to achieve necessary rent concessions from our landlords or we determine that a store or group of stores will not be able to meet our expectations for future performance.”
A spokesperson for Blockbuster said managers, employees and customers will be notified in a timely manner if their stores are affected.
However, the retailer also reiterated its commitment to physical stores.
“We continue to believe strongly that our ‘bricks-and-mortar’ retail stores help to distinguish Blockbuster from our competitors and enhance the overall convenience and value proposition we offer our customers,” the statement said. “At the same time, as we all know, many consumers are increasingly turning to digital channels to access content. Accordingly, as we continue the transformation of Blockbuster’s business model, it is critical for us to make smart decisions about each store location.”
The Dallas Business Journal is an affiliated publication.
Read more: Blockbuster will close 180 stores | Kansas City Business Journal
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