Blockbuster Canada Closes Remaining Stores

Well, it was only a matter of time, and we're certain the US stores will quickly follow: Blockbuster Canada has announced that it will be closing its remaining stores. This was announced after 150 Blockbuster Canada stores were already closed this past June. This is bad news for the local economies, since the company employs approximately 2500 full and part-time workers throughout the country. Blockbuster led the market but was consistently slow to innovate in the dawn of the digital era. Instead, they played it slow and cautious, all but avoiding streaming services until they became reactionary as Netflix began to dominate the marketplace to a level that began to quickly decimate the stores.

What's interesting in this situation is that Canadians just began using Netflix about a year ago. Prior to that the streaming media giant was solely based in the US and limited its content to that market. In less than  year Blockbuster Canada has felt enough of a sting to completely shut down - that's an incredible statement to the influence and power of a complete shift in the way consumers are... well, consuming media.

There are over 250 Blockbuster Canada locations and the receiver in charge of selling the company is seeking a court order to shut everything down. No buyers were willing to jump in and take the chain - not surprising given the fact that the company split off its streaming division, leaving only its inventory and physical locations as assets.

The closure process has begun and, as a result, any gift cards and rewards programs are no longer being accepted at any of the locations. Previously, the stores all liquidated, resulting in tons of purchases of DVDs for around $4 each (or less) and even shelves, signs and other assets making their way into consumers hands at rock bottom prices. This time around, there hasn't been any announcement of liquidation sales or dates and many are wondering if the stores will simply go to auction. 

While in once sense, the closures seem sudden, Blockbuster Canada has been in receivership since earlier this year for owing $70 million to movie distributors. This is also awkward in that Blockbuster's Canadian division was a guarantor for the U.S. business which went into bankruptcy last year and was sold to DISH Network for $320 million. DISH seems to be doing OK with the deal so far.