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Blockbuster Facing September Bankruptcy September 1, 2010

Posted by Erik Swanson in Articles, Retail News.
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More bad news for landlords already struggling to fill increasingly vacant retail centers…The Dallas Morning News reports that Blockbuster will likely pursue a “pre-planned” bankruptcy filing in September.  Over 500 store closures nationwide have already occurred this year. A bankruptcy filing will certainly mean more landlord concessions and another round of store closures is on the way.

Bankruptcy is also leverage for exiting or renegotiating store leases. A year ago, the company said its annual rent expense was $400 million and, since then, it has closed more than 1,000 stores.

So far this year, it has closed 507 U.S. stores and renegotiated leases on 673 locations.

Blockbuster hasn’t decided how many locations it would seek to shutter as part of a bankruptcy, but executives told the major studios it could be between 500 and 800, according to sources quoted by the Times.

 Full article here.

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