Dillon Blockbuster going out of business | SummitDaily.com

Dillon Blockbuster going out of business

Mike Gawkin worked at Blockbuster for eight and a half years before he opened his own video store, called Hole in the Wall, in Dillon. Though he’s transforming Hole in the Wall from a mostly video rental store to more of a thrift and Army surplus store, he reached his first goal in owning the business for the last eight years: to outlast Blockbuster.

Blockbuster in Dillon is having a going-out-of-business sale, with most DVDs priced at $9.99 and some decent deals on Blu-ray players. As part of the company’s “recapitalization process,” Blockbuster is chopping out stores that aren’t profitable enough, when considering high rent and demand for videos.

Local managers could not comment on the closure, due to company policy, but Blockbuster spokespersons released this statement:

“Blockbuster is taking action to recapitalize our balance sheet and reduce our debt substantially. Our recapitalization is intended to put Blockbuster in a stronger financial position so we are better able to invest in new technologies and initiatives to meet our customers’ evolving preferences and continue the high level of convenience, service and value that have long been the hallmark of Blockbuster.”

To do this, the company filed voluntary Chapter 11 petitions with the U.S. Bankruptcy Court for the Southern District of New York on Sept. 23, 2010. Domestic franchises are legally separate entities and therefore are not included in the filing.

DVD vending kiosks, mail subscription and online services will continue to function as usual, and the Blockbuster Rewards program remains in effect, as do coupons and gift cards.

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