Blockbuster U.S. leaves physical retail, 2800 jobs lost
300 stores and remaining distribution centres to close by January 2014
The Dish Network will close all remaining Blockbuster retail stores and distribution centres in the U.S., resulting in the loss of thousands of jobs.
Dish will will call time on its Blockbuster retail business in January, 2014, with the DVD-by-mail service scheduled to close one month before. In total, around 2800 jobs will be lost in the process.
"This is not an easy decision, yet consumer demand is clearly moving to digital distribution of video entertainment," said Dish CEO Joseph P. Clayton. "Despite our closing of the physical distribution elements of the business, we continue to see value in the Blockbuster brand, and we expect to leverage that brand as we continue to expand our digital offerings."
Dish acquired Blockbuster for $320 million at auction after it filed for bankruptcy in September, 2010. Since then, the business has continued to struggle, trimming or selling assets both in the U.S. and abroad.
Blockbuster will continue to trade through its digital-only services, Blockbuster @Home and Blockbuster On Demand.
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