Blockbuster to shutter 186 stores, including 15 in California
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As it heads toward the auction block in early April to end its troubled bankruptcy process, Blockbuster Inc. is shuttering 186 stores.
The struggling home video chain revealed in court filings that it will reject the leases and abandon its properties at the end of the month in an attempt to reduce its ongoing losses.
Among the Blockbuster locations that will close are 15 in California and six in the Los Angeles area, including stores in El Segundo, Santa Ana, Newport Beach, Corona, Anaheim Hills and L.A.'s Larchmont neighborhood.
Before it entered bankruptcy in September, Blockbuster had 3,425 stores in the U.S.
Since a reorganization plan fell apart due to disagreements among creditors, Blockbuster has found itself assailed by movie studios, landlords and others that claim they are owed money. It will now be sold and a group of creditors has filed a ‘stalking horse’ bid, intended to create a floor for other bids, of $290 million. The auction is scheduled to take place on April 4 in New York.
-- Ben Fritz