Blockbuster, Blockbuster!

It's now emerging that Blockbusters is ramping-up store closings.

In a recent SEC filing it has admitted it's closing 960 locations as part of an "accelerated" program.

This was yesterdays retail property news.

Today it has been made known that the company may be trying to terminate 275 to 300 leases & convert 250+ units that sell DVDs.

Worse case means that the firm could be shuttering 1,560 retail stores.

At the end of this most recent quarter Blockbusters operated 3,750 US locations. So they might well end-up closing 41% of all existing brick-&-mortar locations in the US in the next 12 months.

Simultaneously it is looking to increase its non-physical presence by ramping up on line offering and adding thousands of Redbox-like kiosks around the country.

Many property owners have reported that for the past months to years the firm has successfully renegotiated its rent lower-and-lower. Some say that now many Blockbuster locations are paying far below estimated markets rents.

The big question now is who will "back-fill"between 960 to 12,560 prime, high-traffic retail locations.

This does note bode well for brick and mortar retails locations.

BillMcInerney
Commercial Realtor
617 816 3933