The US branch of rental chain Blockbuster plans to close 300 of its 800 stores across the United States, affecting upwards of 3,000 employees.
This comes shortly after the UK arm of Blockbuster went into administration, threatening the closure of up to 160 UK stores. However, there are currently two firms reportedly in discussion to rescue Blockbuster on our shores.
Dish Network Corp, which owns the US side of Blockbuster intends to close the unprofitable American stores as the likes of Amazon, iTunes and Netflix take more of the video distribution market.
In a statement Dish Network said:
“We continue to see value in the Blockbuster brand and we will continue to analyze store-level profitability and, as we have in the past, close unprofitable stores”
Dish, the second largest US-based satellite TV company, purchased a troubled Blockbuster LLC in 2010 in a bankruptcy auction.
Although Dish Network does also own the UK arm of Blockbuster it is ran as a separate company. Therefore although the closure of the US stores is not a direct result of the administration here in the UK (just unfortunate timing), with trouble both sides of the Atlantic it does not bode well for Blockbuster.