Blockbuster Stores are Closing but very SLOWLY

[netflix_got_blockbusted]

Looks like some posters/employees are getting hysterical...

(1) Posting nonsense that all Blockbuster stores are about to close.

Anyone who's gullible enough to believe this likely also believes in the Tooth Fairy.


(2) Re-posting articles from 3 months ago regarding "going concern" risks and loan renegotiations.

Fast forward 3 months, to today: The loans were successfully renegotiated, and the short-term "going concern" risk is gone.


(3) Hilco liquidations.

Notice that the dude who posted this simply disappeared without providing any backup.

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The reality is that Blockbuster is engaged in very aggressive lease negotiations. Approximately 400 company-owned store leases expire each quarter, and Blockbuster should absolutely play hardball with its landlords given the commercial real estate environment. From Blockbuster's perspective, it's win-win: Either Blockbuster will receive a 10-25% rent reduction or it will explore other options (close the store, relocate the store perhaps with a smaller footprint, replace the store with a Blockbuster kiosk, etc.)


Hang in there, as better days are ahead:
(1) Hollywood Video will likely file for Chapter 7 bankruptcy in 2009. When 3,000 Hollywood Videos close Blockbuster will benefit in two ways: First, some revenue will transfer to Blockbuster. Second, Blockbuster should be able to negotiate lower rents as nearby vacancies increase.



(2) Blockbuster kiosks are a great thing. Think of BB kiosks as simply another franchise store. Blockbuster spends $0 upfront yet collects perhaps a 5% revenue share. These kiosks will generate free money and provide Blockbuster with much more flexibility in making open/close decisions with regard to its stores.



(3) Blu Ray will continue to gain traction, and Blu Ray is relatively insulated from Netflix and from aggressive kiosk pricing.

[redfay]

Didn't Hollywood Video already go bankrupt?

[djsdojo]

Yes last year hollywood video pulled out of bankruptcy after they shut down a lot of stores. Where I live I have seen a few Hollywood stores still open but they are few and far apart.

I remember an communication update a year ago that stated that Hollywood was giving free rentals if they could cut up your BBV card.

[netflix_got_blockbusted]

Originally Posted by redfay

Didn't Hollywood Video already go bankrupt?

Sorry....

Movie Gallery (which owns Hollywood Video) filed Chapter 11 bankruptcy in 2007, closed approximately 1,100 stores, and then emerged from bankruptcy in 2008.

Movie Gallery / Hollywood Video continues to operate approximately 3,300 stores.

It's likely that Movie Gallery will file Chapter 7 bankruptcy later this year. A Chapter 7 bankruptcy is much more about liquidation (think Circuit City) and will likely result in Movie Gallery closing (or selling - unlikely) most of its remaining 3,300 stores.

Again, this would be great news on two fronts: Blockbuster will gain revenue as some customers shift from Hollywood Video, and Blockbuster will be in a good position to negotiate lower rent since nearby vacancies will increase.

[AfricahereIcome]

Originally Posted by netflix_got_blockbusted

Looks like some posters/employees are getting hysterical...

(1) Posting nonsense that all Blockbuster stores are about to close.

Anyone who's gullible enough to believe this likely also believes in the Tooth Fairy.


(2) Re-posting articles from 3 months ago regarding "going concern" risks and loan renegotiations.

Fast forward 3 months, to today: The loans were successfully renegotiated, and the short-term "going concern" risk is gone.


(3) Hilco liquidations.

Notice that the dude who posted this simply disappeared without providing any backup.

------------------------------------------------------------------------------


The reality is that Blockbuster is engaged in very aggressive lease negotiations. Approximately 400 company-owned store leases expire each quarter, and Blockbuster should absolutely play hardball with its landlords given the commercial real estate environment. From Blockbuster's perspective, it's win-win: Either Blockbuster will receive a 10-25% rent reduction or it will explore other options (close the store, relocate the store perhaps with a smaller footprint, replace the store with a Blockbuster kiosk, etc.)


Hang in there, as better days are ahead:
(1) Hollywood Video will likely file for Chapter 7 bankruptcy in 2009. When 3,000 Hollywood Videos close Blockbuster will benefit in two ways: First, some revenue will transfer to Blockbuster. Second, Blockbuster should be able to negotiate lower rents as nearby vacancies increase.



(2) Blockbuster kiosks are a great thing. Think of BB kiosks as simply another franchise store. Blockbuster spends $0 upfront yet collects perhaps a 5% revenue share. These kiosks will generate free money and provide Blockbuster with much more flexibility in making open/close decisions with regard to its stores.



(3) Blu Ray will continue to gain traction, and Blu Ray is relatively insulated from Netflix and from aggressive kiosk pricing.

You have some points to your thread but from what I understand from my research. There is no chapter 7 anymore for one and for two in the recent articles I've read blockbuster is closing over 1000 stores and putting out 10000 kiosks by the end of next year. Sorry if to me you sound like another memo coming down from corp. I hope all goes well but I see different in my district. So, I'll wait and see.

[JustTheFacts]

Hey NUTflix, if Hollywood goes chapter 7 do you think the share price of Blockbuster will go up enough so that you are back to even?

[orbitdvd]

Originally Posted by JustTheFacts

Hey NUTflix, if Hollywood goes chapter 7 do you think the share price of Blockbuster will go up enough so that you are back to even?

That would be about $8 a share, right?

[Mxnl1090]

Originally Posted by AfricahereIcome

You have some points to your thread but from what I understand from my research. There is no chapter 7 anymore for one and for two in the recent articles I've read blockbuster is closing over 1000 stores and putting out 10000 kiosks by the end of next year. Sorry if to me you sound like another memo coming down from corp. I hope all goes well but I see different in my district. So, I'll wait and see.

You're an idiot, from what I understand from my research.
See I can just make shit up without citing any sources too!

[Morbid Angel]

Originally Posted by netflix_got_blockbusted

Again, this would be great news on two fronts: Blockbuster will gain revenue as some customers shift from Hollywood Video, and Blockbuster will be in a good position to negotiate lower rent since nearby vacancies will increase.

You're under the impression Hollywood Video has customers to shift over toward Blockbuster. Hollywood Videos are nothing but ghost towns these days.

[AfricahereIcome]

Originally Posted by Mxnl1090

You're an idiot, from what I understand from my research.
See I can just make shit up without citing any sources too!

who's the idiot.you're the one getting upset over a post. Look blockbuster is going to do what blockbuster is going to do. If putting in 10000 kiosks is going to save the company because of low overhead please, don't think they will think twice about letting us go.It's a fact of business. Like I said before, I will go down with my ship and move on.There is nothing else to do. Hopefully it doesn't happen.Time will tell.