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Sunday, March 27, 2011

End of Video Store Era Draws Near as Blockbuster Closes 186 Stores

Blockbuster closing 186 stores around the U.S. in anticipation of its upcoming April auction.
The video and game rental company stated in court filings that it plans to leave those properties by the end of the month, notes the Los Angeles Times.
Once the dominant home video provider, Blockbuster has failed to keep up with competitors like Netflix and Redbox. Since filing for bankruptcy in September, the company has struggled through a failed reorganization plan, deep debt and a barrage of lawsuits filed by studios, landlords and more.
Creditors plan to sell Blockbuster to the highest bidder at an auction on April 4.

This comes after rival rental company Hollywood Video which was the largest direct competitor to Blockbuster Video until it was purchased by Movie Gallery in 2005  Movie Gallery (and therefore Hollywood Video) declared Chapter 7 bankruptcy in May 2010 announcing an end of corporate operations and a liquidation of all assets.

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