by Christopher Freeburn | January 22, 2013 9:44 am
Dish Network‘s (NASDAQ:DISH) Blockbuster video rental chain is shrinking yet again. Investors didn’t like the news, sending shares of Dish down more than 2% in Tuesday morning trading.
The once ubiquitous chain will shutter 300 more stores, cutting 3,000 jobs. After the new round of closures, Blockbuster will have about 500 U.S. locations, down from around 1,700 in 2011, when Dish acquired the chain during a bankruptcy sale, the Los Angeles Times noted.
Blockbuster has been steadily downsizing its remaining operations. It recently announced that it would shut 160 stores in the U.K. as its British unit teeters on the verge of insolvency.
Company officials didn’t disclose which Blockbuster stores would be closed in the latest round.
Dish had hoped to use Blockbuster as a platform to retail its online video-streaming devices, allowing it compete with Amazon (NASDAQ:AMZN) and Netflix (NASDAQ:NFLX). However, federal regulators didn’t grant Dish permission to use its satellite spectrum for voice and data transmission, a necessary step for the planned streaming service. In October, still awaiting a government decision, Dish abandoned the plan.
While Dish itself isn’t necessarily in trouble, the Blockbuster chain is clearly heading for the dust bin of corporate history. Investorplace has assembled a list of other companies that may not live to see the end of this decade.
Source URL: https://investorplace.com/2013/01/blockbuster-plans-to-shutter-another-300-stores/
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