Blockbuster to shutter up to 960 stores

Some brutal news for the 10 of you out there still relying on Blockbuster Video to obtain your movie rentals. Given this announcement, I wonder if the studios will back off of Redbox and other kiosk movie vendors given that you have to assume it was Blockbuster putting the pressure on them to do so, right?


But Blockbuster’s closure story doesn’t quite end there. Further down in the filing, Blockbuster indicated that 275 to 300 stores are subject to the company’s "lease mitigation/termination efforts." Another 250 to 300 stores might be converted into outlets. If successful, that would bring Blockbuster’s grand total of rental store closures to 1,335 to 1,560, or up to about 22 percent of all the stores currently in operation. Of course, there’s a financial side to Blockbuster closing so many stores. The company claims that if it’s successful in closing up to 960 locations, it can increase its earnings before interest, taxes, depreciation, and amortization (EBITDA) by $50 million to $60 million.