Blockbuster Canada to close remaining stores

[billybob476]

They closed the store near my house a few months ago, now it looks like the rest of them (in Canada at least) are following suit.

Blockbuster Canada's remaining stores are set to close soon, and hundreds of retail jobs at the national movie rental chain are about to disappear, victims of the digital movie revolution.

The receiver in charge of selling Blockbuster Canada wants a court order to shut down the movie rental company's 253 remaining retail locations, saying Wednesday it had been unable to find a buyer willing to invest in the business.

Each Blockbuster store employs an average of 10 people, meaning about 2,500 people could be out of work. An estimated 1,400 people lost their jobs during the first round of store closures earlier this summer.

About 150 Blockbuster Canada stores were closed in June, as it grappled with a shift to digital downloads, a tepid economy and new ownership of the U.S. Blockbuster chain which left the Canadian chain in debt.

"As a result of the significant changes in Blockbuster Canada Co.'s competitive landscape, the company's 'bricks and mortar' business model has experienced significant challenges over the last few years, largely due to the proliferation of various alternatives available to media consumers in Canada," the receiver said in a statement issued late Wednesday.

The receiver said Wednesday the closure process should begin in the next few days, and existing gift cards and rewards programs will no longer be accepted.

A court hearing to consider the full-out closure is scheduled for next Tuesday.

No liquidation plans outlined
There were long lines at stores set to be shuttered when the first round of liquidation sales began in June, with customers stripping the shelves bare in only a few hours as they bought stacks of $4 DVDs.

Wednesday's statement from the receiver did not outline liquidation plans.

The receiver said it has tried to sell the company, but was unable to reach a deal with a buyer that was willing to make the necessary investments to keep the business going.

Blockbuster Canada was placed into receivership by an Ontario court in May in the face of US$70 million in claims from various movie distributors, including Hollywood studios that provide its DVDs, and other suppliers.

The Canadian operations had acted as a guarantor for Blockbuster's U.S. business, which went into bankruptcy protection in September and was later auctioned off for $320 million US to American satellite TV provider Dish Network Corp.. Dish did not buy Blockbuster Canada, which was left to pay the bills. Dish shares closed 6.5 per cent higher on the Nasdaq Wednesday at $24.86 US.

Earlier this month, a New York court delayed a hearing that would have decided whether Blockbuster Canada could legally use the brand name as it went through receivership.

Struggled to stay relevant
The new owner of Blockbuster USA had said it did not want the Canadian retailer to use the name, while Blockbuster Canada argued it had paid fees for that right. Blockbuster stores had operated in Canada for 21 years.

The receiver in charge of selling Blockbuster Canada had argued that stripping the chain of that right would "devastate" its business.

Blockbuster Canada had been struggling to stay relevant in a time of increasing digital movie downloads.

U.K.-based HMV, once a top music retailer, sold off its Canadian arm in June to Hilco, a company that agreed to invest up to $25 million to fund the evolution of the national music, video and game retailer as it adjusts to the new world of digital entertainment. HMV was drowning in debt and needed to sell off HMV Canada to pay its bills.

HMV Canada had recently been boosting its offerings to focus on a broader selection of music and film-related products, including T-shirts, headphones, video game controllers, mobile phones and other electronics, in an effort to curb declining revenues as disc sales weaken and more shoppers opt for downloads.

http://www.cbc.ca/news/business/story/2011/08/31/blockbuster-canada-close.html?cmp=rss

[Bryancd]

Question is....did anyone even notice?   :)

[billybob476]

Probably moreso here then there, as we don't have quite as many options for digital delivery then you guys (nor do we have redbox!)

However, no, I don't think many people noticed.

[Feathers]

Probably moreso here then there, as we don't have quite as many options for digital delivery then you guys (nor do we have redbox!)

However, no, I don't think many people noticed.

It's surely more that the mailorder people replaced the likes of Blockbuster? Does digital have that big a portion of the market in Canada, I thought it was still largely a US phenominon?

[billybob476]

Probably moreso here then there, as we don't have quite as many options for digital delivery then you guys (nor do we have redbox!)

However, no, I don't think many people noticed.

It's surely more that the mailorder people replaced the likes of Blockbuster? Does digital have that big a portion of the market in Canada, I thought it was still largely a US phenominon?

We have a mail order service, Zip.ca. However it isn't incredibly popular. Netflix Canada is streaming only. One big competitor is our major cable provider, Rogers has a half decent on-demand selection with prices comparable to Blockbuster.

[Bromptonboy]

More brick and mortar jobs disappearing - I feel for those jobless folks.

[davekill]

Barnes and Noble have closed another of their book stores - remember books?

There was a Starbucks inside too, it was a good place to spend an afternoon.

[Bryancd]

A whopping ZERO jobs created here in the US economy last month...

[Bromptonboy]

Depressing...but what to do?  Hold on to your job like grim death...

[Dangelus]

I have lost count of the long term empty retail units in my town right now... :(

[Rico]

Any retail store that sells items that can easily be delivered to your home (either electronic or otherwise) have their days numbered.  We actually still have some open video stores around by me - including a Blockbuster, I think.  But they just can't really compete with digital distribution.  And Amazon is killing the rest of the places, like Borders.  The trend is just going to continue.  About the only safe places are food sources - grocery and restaurants.  And even those have been whittled down in the last few years.

[Dangelus]

Any retail store that sells items that can easily be delivered to your home (either electronic or otherwise) have their days numbered.  We actually still have some open video stores around by me - including a Blockbuster, I think.  But they just can't really compete with digital distribution.  And Amazon is killing the rest of the places, like Borders.  The trend is just going to continue.  About the only safe places are food sources - grocery and restaurants.  And even those have been whittled down in the last few years.

We are getting an influx of "used" entertainment stores, ie Pre-owned games, DVDs CDs and hardware. Also betting shops, pound shops (cheap goods imported in bulk sell for £1) and now "cash" stores where people can cash a cheque early (for a price) or get really expensive short term loans.

It's very sad but inevitable. It also makes towns retail areas look very poor. :(

[Rico]

We have some of that here too.  Except the betting shops.  Gambling is pretty tightly controlled in most states here.  Usually the only place to do it is a casino or a race track.  And many cities and states don't have casinos nearby - which is just as well.  When people have little money, they get desperate and make poor choices.

[Feathers]

A whopping ZERO jobs created here in the US economy last month...

That statistic even caught the news over here. Our equivalent is apparently a little better but I'm not sure by how much.