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Blockbuster Closing 500 More Locations, Optimistic

MSN reports that, following a broad quarterly loss, video and game rental company Blockbuster will close 500 more stores this year. The first round will consist of 150 closures in April, with more to come later in the year, rounding off a total of between 500 and 545.

According to MSN, Blockbuster Wednesday posted a net loss of $435 million, or $2.24 per share, worse than the loss of $359.8 million, or $1.89 per share, a year ago. The company also has a debt of $963.9 million and has announced an agreement with Rothschild, which will help restructure that debt.

"While we believe the future is bright, the next 12 to 18 months will remain challenging as we balance the secular decline of a single channel with the ascension of emerging channels, such as vending and digital," Blockbuster CEO Jim Keyes said in a statement.

Blockbuster announced the closure of over 250 stores in January. Last year the company closed 374 U.S. stores.

Read more here.

  • Zingam
    Who cares?
  • JasonAkkerman
    Color me shocked.
  • rmmil978
    Netflix and Red Box are killing Blockbuster. It's only a matter of time before its physical stores die.
  • kyeana
    We live in a digital world now. With services such as netflix and hulu, there is very little need for renting physical movies, and when you do rent physical movies you can get them for a dollar a night at redbox.

  • grieve
    The digital distribution age is here... This is no shocker.

    Soon we will only rent movies via digital download. (except those of us who torrent)
  • leo2kp
    If I didn't have to pay $6 to rent a DVD maybe I'd go there more...
  • Anonymousca4
    I really hate netflix and blockbuster so I dont care but if smaller vedio stores close I will be very upset at netflix
  • starryman
    leo2kpIf I didn't have to pay $6 to rent a DVD maybe I'd go there more...Exactly. The Blockbuster around my place charges $5.26 including tax for one new release video. They have the $1.99 rental racks but who wants to even pay $1.99 for a 3+ year old DVD that can be bought outright for less than $5 at Walmart? Blockbuster has it all WRONG. They can do business but just be competitive. Just greedy. I've also had Blockbuster movie packages that include movie by mail but even with that, NetFlix is much better by mail. At this point I feel pretty spoiled... NetFlix - 3 movies at a time for $15/mo, TIVO HD for $13/mo, and Cable HD for $65/mo. I'd actually have Blockbuster in my list of must haves but again when they want to spank me with a $5+ movie rental charge... there are better alternatives. Make all the movies under $3 and you have a winner.
  • flea420
    Hollywood video has always been better and cheaper, they are helping with BB's death also
  • techguy911
    Even small cable companies have tv/movies on demand now i live in NE Ontario and you can rent a movie without getting off your couch having to warm up the card driving to blockbuster and pay $7 a movie?.

    Now its press 1 button on remote navigate movie menu and hit play movie downloads to digital cable box for $5.99 and stays there for 24 hrs.

    Blockbuster had plans to do this but cable companies beat them too it.