Grant Thornton Ltd., the Receiver of Blockbuster Canada has announced the movie and video game rental chain is going out of business.
After being pushed into receivership in May, the receiver closed approximately 150 of the Company's underperforming retail locations in June and continued to operate the company's 253 remaining stores.
Since then, the receiver has conducted a Court-approved sale process aimed at finding a suitable buyer for Blockbuster Canada. A total of 55 firms reportedly looked at buying the company with 14 of them making an offer but none of the proposals were accepted.
In an Ontario Superior Court hearing scheduled for September 6th, the Receiver will recommend that it conduct an orderly wind-down of the Company's operations. If approved by the Court, the store closing process would commence within a few days and the Company would cease accepting Blockbuster Canada Co. Gift Cards and loyalty/rewards programs as of the commencement of the store closure process.
"We appreciate the ongoing support and wish to thank Blockbuster Canada Co.'s employees, customers, suppliers and other stakeholders during this difficult period," said Michael Creber on behalf of Grant Thornton Limited.
US-based Blockbuster L.L.C. purchased the assets of Blockbuster Canada Co.'s US parent company from US bankruptcy in April, 2011 and continues to operate 1,500 blockbuster stores in the US. Those stores will remain open and are unaffected by the Canadian receivership proceedings and store closings.
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