Blockbuster Closing About 1,000 Stores

Blockbuster is ramping up its store-closure process. By the end of next year, the retailer is closing up to 960 locations as part of an “accelerated” program, according to a recent SEC filing. That number is up from the up to 425 that were previously on tap.

In addition, the company is trying to terminate between 275 and 300 leases and convert 250 to 300 units into outlets that sell used DVDs. So in a worst-case scenario, that would mean 1,560 Blockbusters will shut down.

Retailers Say Rent Relief Is Working

Another interesting article appeared today on rent relief at shopping centers.

Apparently Starbucks has had success in receiving concessions from landlords, in its quest to lower rents by as much as 25% at some of its locations. Additionally, jeweler Zale Corp. earlier this week joined the ranks of retailers looking to catch breaks, and we wrote about Charming Shoppes’ strategy yesterday.

Are Major Store Closures Over?

It’s been kind of quiet on the mass store-closure front, hasn’t it?

Sure, we’ve seen a lot of damage with the Circuit City/Linens closures, and it seems like there could be unsurprising news from Blockbuster some time soon. But didn’t you think that by this time in 2009 there would be more fallout from major chains?

Moody’s Says 39 Retailers Distressed

Moody’s recently put out a “Bottom Rung” list of 283 companies that the ratings agency thinks are most at risk of defaulting on their debt, and there’s a lot of retail on there.

Reuters has nicely put together a condensed list of all 39 retail and restaurant operators to make the distinction, and there’s not too many surprises.

Blockbuster Considering Bankruptcy?

Though company spokespeople are denying it, news reports say that Blockbuster has hired law firm Kirkland & Ellis to help it explore a possible bankruptcy filing.

Of course, Blockbuster has been on the retail watch lists of industry observers for a while now, and the chain’s main competition is performing extremely well in the recession.

What’s Next For Circuit City?

Now that Blockbuster is no longer interested in acquiring Circuit City, what is next for the electronics chain?

Blockbuster and its major shareholder Carl Icahn backed out of their $1-billion-plus offer after Circuit City opened its books for the suitors. Apparently, they didn’t like what they saw.

Blockbuster’s Circuit City Surprise

It seems that Circuit City’s management was just as surprised as we were about a proposed $1.3-billion offer to acquire the company by Blockbuster.

We were weighing a possible deal last week after reading a Business Week article but didn’t expect this.