Blockbuster Closing Nearly 960 Stores
In a recent SEC filing, Blockbuster has revealed they plan to close up to 960 stores by the end of 2010 with the hopes of becoming more financially stable. The decision will largely affect unprofitable Blockbuster locations with the remaining focus being put on the profitable ones. Blockbuster spokesperson Randy Hargrove had this to say via a phone interview with CNET.
“All these stores are candidate stores,” Hargrove said. “Although we may in fact close that many stores, if we can renegotiate leases or remodel stores to make them more profitable, that number might go down.”
Blockbuster predicts they will close roughly 300 to 385 stores by the end of 2009, previously they estimated they would only need to shut down between 280 to 300 by the end of 2009. Overall, Blockbuster is planning to shut down between 810 to 960 stores.
The filing wasn’t specific as to what regions these closures would affect although we assume they are worldwide closures. Out of the 7,000 retail locations surveyed, Blockbuster found nearly 18% were unprofitable hence susceptible to closure.