Blockbuster stores have huge footprints, usually in strip malls. Rent is expensive just doesn't make financial sense to keep the doors open. When you used to need Blockbuster it was great to walk in the stores and have hundreds of titles to chose from, but now its size is working against it just in the same manner that Best Buy (BBY) is fighting a losing against online retailers.
After the closing of these 300 stores, there will only be about 500 Blockbuster stores across the nation, but if you want to rent a movie there, you better hurry, because they probably will not be around long. I expect as more leases come up for renewal we will see more closings.
Technology is a great thing, but it can also devastate companies. Borders and Circuit City are two perfect examples of companies that were not able to adapt… and Blockbuster will soon be the next example.
It was a great company, and a great concept in its prime, but those days are gone, and it looks like DISH won't even try breathe life back into the dying brand's brick and mortar stores.
Michael Fowlkes is a financial writer who has been with the Fresh Brewed Media family since 2004. Over the course of his tenure with Fresh Brewed Media, he has worn many hats, including portfolio manager, options analyst, and writer. Michael received his undergraduate degree from Virginia Tech in Accounting and got his start in finance working as a stock trader for six years at Chase Investment Counsel in Charlottesville, Va. His articles typically cover big-picture events and forecasting what impact they will have on the stock market. Follow Michael on Twitter @MFatMICenter.