Blockbuster’s woes on the high street continue with the announcement that 300 Blockbuster Video rental stores across the US are set to close by early January.
It’s thought that up to 2,800 jobs will be lost as a result of the closure.
The company – which was bought by Dish Network in the US and Gordon Brothers Europe in the UK – last week announced that its UK operations will also cease trading.
Gordon Brothers cited poor trading and a failure to broker a licensing deal with Dish – which would have seen the start of a new digital platform – as the reasons for the brand’s discontinuation.
Online streaming and DVD-by-post services such as Netflix and Redbox have crowded Blockbuster out of a market they once dominated.
“This is not an easy decision, yet consumer demand is clearly moving to digital distribution of video entertainment,” said Joseph Clayton, Dish president and chief executive officer, in a statement.
On a more positive note, 50 Blockbuster outlets currently operating as independent franchise stores will remain open, and Mr Clayton refused to give up on the brand’s potential.
“Despite our closing of the physical distribution elements of the business, we continue to see value in the Blockbuster brand, and we expect to leverage that brand as we continue to expand our digital offerings”.
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