Dish Network announced that it plans to close hundreds of Blockbuster stores in the next couple of weeks and expects to cut thousands of jobs as a result. The video and videogame rental company was bought by Dish in 2010 after the company went bankrupt. CNN Money reports that 300 stores will be closed in the United states and 3,000 jobs will be lost.
The company will still continue to operate about 500 stores in the United States. Some stores will be closed as their leases end, while others will be shut down based on their poor performances.
"We continue to see value in the Blockbuster brand and we will continue to analyze store level profitability and -- as we have in the past -- close unprofitable stores," said Dish spokesman John Hall., in an email to CNN Money.
Blockbuster has had a tough time trying to compete with services like Netflix and kiosk-based service Redbox in recent years. The company has done its best to adapt by offering streaming services and kiosks of its own throughout the U.S.
We will have more on this story as it develops.
Source: CNN Money