Another Blockbuster Bites the Dust

Another store, this one at the Ocean Ranch Village, is closing up shop April 10.

The store has been at the location since 1999 and is managed by Shea Properties. Another Blockbuster, at 28961 Golden Lantern St., also closed shop several years ago and is for lease at the Grove, a strip center at Crown Valley Parkway and Golden Lantern Street.

A statement from a Blockbuster spokesperson said: "As part of the recapitalization process, Blockbuster will be evaluating its U.S. store portfolio with a view towards enhancing the overall profitability of the store operations."

In a March 11 press release, the company announced that the U.S. Bankruptcy Court for the Southern District of New York has authorized Blockbuster to conduct an auction process for the company.

Blockbuster entered into an asset purchase agreement with a “stalking horse” bidder, Cobalt Video Holdco LLC.

The Cobalt agreement, which was modified to address certain objections that were raised prior to a court hearing on March 10, will serve as the “stalking horse” bid in the auction, which sets the floor or minimum acceptable bid.

At the March 10 hearing, the court denied a motion seeking to immediately convert the company’s Chapter 11 cases to liquidation cases under Chapter 7 of the Bankruptcy Code, the release said.

Blockbuster expects that its U.S. operations, including a majority of its stores, DVD vending kiosks, by-mail and digital businesses, will continue to serve customers in the ordinary course during the sale process. 

Blockbuster franchise locations in both the U.S. and abroad are independently owned, operated and funded and will continue normal business operations, the press release said.