Curtain falls on Blockbuster in Westport
Blockbuster plans to close its Westport store at 1505 Post Road East on Sunday, a few weeks after Dish Network acquired the bankrupt movie rental giant for $320 million. Dish Network, which ultimately paid $228 million after adjustments for available cash and inventory, intends to close 1,100 of Blockbuster's 1,700 stores.
Blockbuster, based in Dallas, filed for Chapter 11 protection in September 2010 after struggling for years as Internet video rental company Netflix and rental kiosks like Coinstar's Red Box took a bigger share of its business. Despite rolling out its own kiosks and online rental programs to compete with Netflix and Redbox, the company found itself in almost $1.5 billion in debt to creditors such as Warner Bros. and 20th Century Fox as a result of diminished revenues.
Shares of the publicly traded company, which in July 2010 was delisted from the New York Stock Exchange, were valued at 15 cents by mid-day Thursday.