Better use that Blockbuster Express coupon fast. The No. 1 DVD/Blu-ray rental chain, Blockbuster has set a sale auction date for April 4, according to Reuters, and who knows what will happen to the company after that.
We reported in February that Blockbuster had started the process to sell itself. But, with creditors including such Hollywood studios as Walt Disney Studios owed more than $100 million, a group of hedge funds led by Monarch Capital reached an agreement over terms of a sale auction that will leave more money for repayments.
The auction stops the DVD/Blu-ray retail chain from being liquidated and could mean that Blockbuster continues business. But there’s always a chance that the purchaser will shut down all or parts of the company.
Blockbuster has more than 2,500 retail locations, plus Blockbuster Express kiosks, the Blockbuster.com web store and its online video business.
Competitor Redbox, meanwhile, is continuing to grow its installed base of DVD/Blu-ray rental kiosks and plans to increase the amount of Blu-ray discs in its units by 10%.
Our guess for Blockbuster — or rather recommendation for the new owners (without seeing the company’s accounts, of course): keep the kiosks and online properties and close the retail stores, at least in urban areas. On a personal note, I’ve been into our local Blockbuster a few times in the last few months and have seen customers in there, but there’s also a Blockbuster Express kiosk — in the supermarket right next door. Hmm.
One thing’s for sure: There will most likely be some retail closures for the chain, and that means great sales on used discs. So, keep an eye out for those.
What do you think? Do you shop at Blockbuster?
They should rename to Blockbusted… Wasn’t this the company which was started and owned by the ex-garbage man who also then owned the Miami Dolphins – and then sold Blockbusters for a large amount of dinero? If he was that successful, the new owners should have kept him on the board as a consultant!