Published in News
Blockbuster to dump European stores
by David Stellmack on17 March 2010
Only if they are lucky enough to find a buyer
It is no secret that Blockbuster has been bleeding cash for some time; and it seems no matter what they have attempted to do to stop the bleeding, the weight of poorly performing stores and shortage of good revenue streams outside of their retail operations have conspired to make things difficult at best.
Blockbuster has come up with a new strategy, which is selling off more of its retail stores. This time around, however, it will not be a closing. Instead, the company is looking to actively sell off its European Blockbuster retail stores; they are so serious about it that they have hired Winchester Capital to do it. The sell-off of the Blockbuster European operations will include stores in the U.K., Ireland, Denmark and Italy.
Reports suggest that these assets could be worth as much as $76 million USD to the company. While it is generally accepted that even if they are able to sell off their European operations and get close to full value, it could still be too little, too late. The company has recently outlined some new initiatives, including getting into the kiosk video rental business in a big way with partner, NCR. The company needs to create a new revenue stream outside of the retail rental business if it wants to survive long-term, and so far it does not look like that is going to happen.