MCKINNEY, TX – While video store chain Blockbuster languishes in receivership here in Canada, its American parent has assumed contracts with property owners to maintain more than 1,500 U.S. Blockbuster stores that would have closed under liquidation.
The move means that Blockbuster also will retain more than 15,000 store employees. Blockbuster Inc. sold most of its assets to satellite television provider Dish Network Corporation in April as part of a bankruptcy auction, averting any sale to liquidators.
“We’re pleased that we will continue to operate more than 90% of the stores that were offered at auction in April,” said Blockbuster president Michael Kelly, in a statement. “By lowering pricing and offering competitive summer promotions, we’ve brought millions of customers back into Blockbuster stores in the last three months to experience the best in convenience, choice and value. Today, more than 100 million people live near a Blockbuster store.”
In addition, Blockbuster recently overhauled its movies by mail service known as ‘Blockbuster Total Access’ in the hopes of winning back its customers that may have defected to Netflix. The company said that the service now offers the availability of many new releases 28 days before Netflix, unlimited in-store exchanges, games for XBOX 360, Playstation3, and Nintendo Wii, plus has dropped the additional charge for Blu-ray movies.
