Dish Network on Thursday revealed plans to shutter 200 additional Blockbuster stores, dropping the number of nationwide locations to approximately 1,500. Dish won an auction to take control of Blockbuster and its remaining assets this past April, after the fallen giant filed for bankruptcy last September. Dish said that the 15,000 employees working in Blockbuster locations that will remain operational will not lose their jobs. The company also said employees of the locations set to be shuttered will have the opportunity to transfer to other stores. Blockbuster failed to evolve with the shifting movie rental industry — when it finally did begin to offer new portfolio options to compete with the likes of Netflix, it neglected to add any real value or differentiation beyond competitive offerings. Coupled with the expense of operating physical rental shops, Blockbuster didn’t stand a chance. Dish Network acquired Blockbuster’s in April for approximately $228 million in cash, and it remains to be seen whether or not Dish can manage to transform the current business into something worthwhile.
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.