Blockbuster Closing Stores: 300 Store Closures Will Cut 3,000 Jobs And Leave Just 500 Locations In Total

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Blockbuster Closing
A store closing sign sits outside a Blockbuster movie rental store that had recently closed in Superior, Colorado, on Nov. 19, 2009.

After mass closings last year that shuttered several locations across the nation, Dish Network Corp. announced on Monday that it will close another 300 Blockbuster movie rental stores in the U.S. and, in turn, cut 3,000 jobs.

Dish spokesman John Hall told the Denver Post that the closures will happen at underperforming stores and stores nearing the ends of their leases.

"It will happen over a period of time as many leases are ending," Hall said.

Hall did not disclose when individual stores would be closing or which locations will shutter, but he did note that the closures will result in the loss of 3,000 employees.

The closures will bring the total number of remaining Blockbuster locations to 500, the company said. Dish "continues to see value in the Blockbuster brand, and we continue to analyze the store-level profitability as we have in the past," Hall said.

Monday’s announcement comes months after almost 500 Blockbuster stores were closed last February by Dish because they were “not performing well."

The closures at Blockbuster come as more consumers begin to utilize video streaming services like Netflix Inc., pop-up kiosk services like Coinstar Inc.'s Redbox and on-demand services through cable providers to watch movies and popular television shows rather than renting from brick-and-mortar stores.

Dish acquired Blockbuster in 2011 for $320 million after the video rental company filed for bankruptcy. Currently, Dish employs 30,000 people nationwide as the No. 2 satellite-television provider with about 14 million subscribers.

"There have been store closures" Hall said of past closures. "Really, from the time of acquisition there has been a strategy to evaluate stores on a case-by-case basis in an effort to look at their production."

Dish Network said it has been considering using locations of the video rental chain to sell its smartphones and wireless services. The company also plans to move its Blockbuster headquarters from Texas to Douglas County in Colorado.

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