Blockbuster To Ax Stores Amid $340M Debt Refinance

Law360, New York (September 15, 2009, 5:46 PM EDT) -- Blockbuster Inc. plans to close nearly 1,000 stores and sell $340 million in senior secured promissory notes in a private offering to improve liquidity and pay back outstanding debts, the company has revealed.

Almost 80 percent of Blockbuster's retail profits are earned by a core 35 percent of the company's locations, while 18 percent of its stores are unprofitable, the company announced in U.S. Securities and Exchange Commission filings Monday and Tuesday. It plans to close between 810 and 960 stores by the end of 2010,...
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