Blockbuster is closing stores and cutting thousands of jobs in the United States, CNN reports Jan. 22. The company will only keep 500 stores open, but their locations aren't yet revealed.
According to Dish spokesman, John Hall, 300 stores will be shut down as their leases end or are folding due to under-performing. This equates to cutting 3,000 jobs. Within the next few weeks the closings will go into effect. Employees were notified of the closures Friday.
Hall wrote this statement to CNN Money Tuesday:
"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."
Blockbuster was acquired by Dish for $320 million in a bankruptcy sale in March 2011. The chain had around 1,700 stores at the time.
As consumers turn more to streaming videos or buy on-demand movies through their cable providers, news that Blockbuster stores are closing isn't too shocking.