Orange County Register

Blockbuster Inc. plans to close 810 to 960 stores by the end of 2010, according to a Tuesday company filing to the U.S. Securities & Exchange Commission.

As of Aug. 13, the leading global provider of in-home movies and game entertainment had more than 7,100 stores throughout the Americas, Europe, Asia and Australia.

Blockbuster offered a store closure breakdown:

• 2009 normal closures: 280 to 300
• 2009 accelerated closures: 300 to 385
• 2010 normal store closures 100 to 125
• 2010 accelerated store closures: 130 to 150

The company said 35 percent of its stores are considered core, 47 percent are profitable non-core and 18 percent are unprofitable. It added that there are another 275 to 300 stores with additional lease mitigation/termination efforts and another 250 to 300 stores that may be converted to outlets.  

It’s unknown how or if the O.C. Blockbuster locations will be impacted by Tuesday’s announcement. Blockbuster could not be immediately reached for comment.

Here’s an excerpt from a company press release issued last month:

Second quarter 2009 domestic same-store sales decreased 17.8 percent, reflecting rental and retail comparable decreases of 13.3 percent and 37.9 percent, respectively. The decrease in domestic rental comparables was primarily due to a combination of three factors: Blockbuster’s management of the business to preserve cash and maximize liquidity, the challenging macro economic environment, and the increasingly competitive landscape. The decrease in domestic retail comparables was primarily due to lower sales of game hardware, software and accessories. International same-store sales decreased 7.1 percent, reflecting rental and retail comparable decreases of 1.2 percent and 14.3 percent, respectively. Worldwide same-store sales declined 14.7 percent.

According to a story last month by Bloomberg, Blockbuster Inc. CEO James Keyes said the largest movie-rental chain may be more aggressive in closing stores as it rolls out as many as 10,000 rental kiosks by mid-2010.

More from OC Retail:

• Toy retailer to open 5 O.C. stores
• South Coast Plaza gives closing date for store
• 100-plus O.C. store closures in past year
• Firm with 7 O.C. stores addresses bankruptcy speculation
• Big drugstore chain opens 2 O.C. stores
• Women’s clothing retailer may open up to 100 outlet stores
• Sears closes O.C. store
• Pottery Barn closes O.C. store
• The Block’s new stores and future
• Family may reopen Mervyn’s stores
• Retailer wants to close about 85 stores, files for bankruptcy
• $35 movie ticket may be coming to O.C.
• Toy company files for bankruptcy
• South Coast Plaza retailer reportedly may file for bankruptcy
• Department store discounter opens first O.C. store
• O.C. exclusive store opens at Fashion Island
• Recall: 5.4 million items sold at Target, Ikea, other stores
• Clothing retailer with 7 O.C. stores emerges from bankruptcy

For more from OC Retail, see list of links on the right-hand side of this blog.

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