Two Local Blockbuster Stores Closing
The Blockbuster branches on McBean Parkway in Valencia and Orchard Village Road in Newhall are closing.
Both locations are starting the liquidation process today. Movies are no longer available for rent, but are available for purchase at a reduced price.
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The Dallas-based Blockbuster Inc. filed for bankruptcy on September 23 last year. The company listed $1.02 billion in assets with $1.46 billion in debt.
Summit Distribution LLC has recently accused Blockbuster of failing to pay $1.6 million for DVDs of “The Twilight Saga: Eclipse.”
Blockbuster, which previously operated 3,000 stores, plans on shutting down 110 underperforming stores by the end of the financial quarter.
According to an employee at the McBean branch, both stores faced pressure from new landlords to sign longer leases at raised prices.
The company has rejected the leases on 220 locations since filing for Chapter 11.
Corporate officials would not agree to the terms, said the employee.
Management was informed of the closures last week.
Both stores will stop selling merchandise on April 10.
The branches on Bouquet Canyon Road in Saugus and Soledad Canyon Road in Canyon Country will remain open.