Movies and video games are being liquidated at bargain prices at six Blockbuster Canada Co. stores in Edmonton that are closing their doors.
The outlets are among 146 locations the stricken film and video game rental chain is shutting down next month.
The Canadian division of Blockbuster went into receivership earlier this month. Its U.S. parent filed for Chapter 11 bankruptcy protection more than six months ago.
Appointed receiver Grant Thornton Ltd. released a list of stores the accounting and consulting firm has ordered closed as it prepares to sell off the chain.
The Ontario Superior Court of Justice authorized the firm to start looking for buyers of Blockbuster Canada’s assets and operations last week.
“While a majority of Blockbuster Canada Co.’s stores are continuing to operate during such process, certain stores will be closed over the next few weeks,” Michael Creber of Grant Thornton said in a release.
“The purpose of the store consolidation is to provide Blockbuster Canada Co. with the opportunity to streamline its operations to better position the business for sale.”
Blockbuster Canada will be clearing out its movie and games at the closing stores at discounts of at least 30 per cent, the release said.
As of Friday, gift cards will not be honoured at any store being closed.
Blockbuster Canada acted as guarantor for its U.S. parent and became liable for repayment of nearly $70 million in debt when the U.S. company collapsed.
Kyle Murray, associate professor of marketing at the University of Alberta School of Retailing, said the company was a casualty of consumers shifting to downloaded, pay-per-view, streaming and mail-order viewing options.
“Large retail chains need growth in revenue and profits, but that is no longer possible in the video rental business,” Murray said. “That being said, there is still a market for video rentals, and without Blockbuster there is a major hole in distribution to consumers. It will be interesting to see what part of Blockbuster survives and what, if any, other retailers will step in to fill the gap left by Blockbuster in a dying video rental industry.”
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