- Apr 6, 2009
- Reaction score
This doesn't come as a surprise to many, but I seriously doubt Blockbuster will be able crawl out of the hole they've dug....
Non-US subsidiaries, including the 600 UK shops, are not involved in the bankruptcy proceedings, but hundreds more American stores could now close - on top of the 500 that have shut in the last year.
The chain is creaking under the weight of its debts and has faced management upheaval in recent years. Its problems have been made worse by a growing number of vending machines that rent films for as little as a dollar a day, as well as an explosion in the number of consumers streaming movies online, either illegally or through legitimate sites such as Netflix and iTunes. DVD and video stores appear as threatened as high-street music shops.
Blockbuster has roughly 3,500 remaining stores in the US, making it the country's last major DVD franchise - rival chain Hollywood Video collapsed earlier this year.