Blockbuster to shutter 186 stores, including 15 in California

As it heads toward the auction block in early April to end its troubled bankruptcy process, Blockbuster Inc. is shuttering 186 stores.

The struggling home video chain revealed in court filings that it will reject the leases and abandon its properties at the end of the month in an attempt to reduce its ongoing losses.

Among the Blockbuster locations that will close are 15 in California and six in the Los Angeles area, including stores in El Segundo, Santa Ana, Newport Beach, Corona, Anaheim Hills and L.A.'s Larchmont neighborhood.

Before it entered bankruptcy in September, Blockbuster had 3,425 stores in the U.S.

Since a reorganization plan fell apart due to disagreements among creditors, Blockbuster has found itself assailed by movie studios, landlords and others that claim they are owed money. It will now be sold and a group of creditors has filed a "stalking horse" bid, intended to create a floor for other bids, of $290 million. The auction is scheduled to take place on April 4 in New York.

-- Ben Fritz

Related:

Blockbuster sales process objected to by Disney, Universal, landlords, U.S. trustee and others

Blockbuster to be sold; opening bid set at $290 million

Blockbuster files for Chapter 11 bankruptcy protection; sets plan to reorganize

Comments

[Chuck B]

This is what happens when you are too greedy, charging $5 for a blue ray rental is insane!!!

[David B.]

Netflix and streaming-video sites put the Kobosh on Blockbuster. The company was asleep at the switch, and couldn't see the massive change coming to video distribution.

[NameRequired]

Blockbuster is now trying out these new DVD kiosks. They put a kiosk in the market I go to. Guess what video store is four doors down from the market?

That Blockbuster store is now one of the ones being shuttered. I thought I'd go in and pick up some XBox 360 games for my son, but all the good (new) games were
packed up.

I like DVD's, I don't like streaming. I like the director's commentary, the special features, the cast bios, and I used to like trying to find the 'easter eggs'. But I see I'm a dinosaur in that respect. That's OK, you can go ahead and watch "Saving Private Ryan" or "2001" on your mobile phone and I'll sit in my living room playing the DVD on my 50" LCD.

[FJD]

They still have stores??

[Sabrina]

I'm all about Netflix these days...

[w1n5t0n]

Netflix will be the next to declare bankruptcy.

[Thibadeaux]

Enjoy the stereo or lossy surround tracks with your streaming!

[Kevin]

I'm surprised Blockbuster lasted this long. I thought 4-5 years ago; they would fall because of advancements in technology.

[brutony]

Hey Thibadeaux, whats lossy surround tracks? Do they sell that at your local Blockbuster? They closed 2 by me, but down my block we do have one of their kiosks-with movies older than your underwear, and of course, nothing in Blu-Ray!

[mark]

With Comcast and now AT&T imposing usage caps on all of their residential customers I don't view Netflix streaming as much of a competitor now. I might end up paying as much in overages to view a movie as I would have if I could rent the dvd from the now closed Blockbuster store down the street.

[box]

hell no haha i don't care about blockbuster...its all about redbox with prices for rental from a buck for a normal dvd, 2 for a video game and 3 for a blue-ray dvd..tell me who wins this one

[Thibadeaux]

Hi brutony! Streamers aren't getting high-resolution surround audio that Blu-Ray affords.

[Nomo Blockbuster]

Now a South Korean telecommunications may bid on Blockbuster. What's up with that? Blockbuster now a telephone company? No, thank you.

[BB DOA]

Blockbuster online mail program has been DOA. 30 movies in queue and no movies for weeks. As they send the traditional nonsense reply via email complaints is to add more movies to queue. Ok...I'll play the game only once. I went ahead and added 5 more movies to the queue BB sent us a year ago as a test. Now 35 in queue. Result.....same statuses as the entire queue - "unavailable", "on order" or "very long wait". There has to be something qualifying this as fraud when BB auto deducts the next months payment knowing they're not going to send a movie. In my case - 3 movies @ at a time program and the only movies I've been getting are titles from Netflix. You know, Netflix who gets movies 28 days after Blockbuster. Blockbuster has had these titles for weeks and in the test 12 months, but seeing a BB movie in my mailbox is no longer possible. Kill your contract before BB takes another monthly payment from your account. If you don't, you've just donated the money to them as they no longer are providing the movies. The pathetic part of it all, is that BB doesn't think it important to provide a courtesy notice of saying thanks for the donation.

[GeoB]

I never understood $7-$9 just to see a movie when it hits the theaters while getting a $7 popcorn, $6 heat lamp hot dog and wash it down with a $5 soda. It's amusing when I see TV commercials where you can now watch your favorites on a $200 - 3 inch phone while commuting on a train as entertainment. I'm quite happy sitting down with my wife in matching chase lounges listening to our Yamaha 7.1 - Programmable Infinity theater speakers - Samsung Blue Ray - LG 56". Blockbuster is toast by their online mail program. Netflix at least sends movies via mail. BB can't even do that anymore. Rent em', buy em' but never stream em. How entertaining can it really be watching your favorite on a pigmy screen and stop it to answer a phone call while getting knee bumped from the person sitting next to you. One thing is absolute, Blue Ray is where it is without having to tell the person behind me to be quite or looking around the basketball head in front of me is a faint memory. Since Blockbuster now regrets not purchasing Netflix when it had the chance, I bet they're kicking themselves in the backside now seeing Netflix sends me the movies without any problems.