Blockbuster Movie Rental Chain Faces Massive Store Closings

September 16, 2009

(ChattahBox)–Blockbuster, the once popular movie rental chain, continues to lose ground to its online movie rental competitors, like Netflix and newcomer Coinstar Inc’s Redbox. Facing dwindling sales, Blockbuster announced on Tuesday that it would be closing about 960 stores.

The struggling movie rental company made its store closing announcement in a regulatory filing. Combined with lease mitigation and the conversion of some of the ubiquitous movie rental stores to outlets; the final store closings could reach levels of 1,335 to 1,560.

Blockbuster once was the king of the movie rental business, currently operating 7,100 brick and mortar stores throughout the U.S.

Netflix’s convenient online mail-order service first began to chip away at Blockbuster’s customer base several years ago. And now with the appearance of Redbox’s automated kiosks conveniently placed at supermarkets, offering inexpensive $1 per night movie rentals, Blockbuster is on the verge of disappearing from America’s retail landscape.

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