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Blockbuster Canada has been pushed into receivership by the Hollywood giants that provided it with new releases, after the studios called in $67-million (U.S.) in debt racked up by its U.S. parent company.

Quote from the article

“Everyone will go on about how this is all because of Netflix but nothing could be further from the truth,” Mr. Eiley said. “Blockbuster is the dominant rental player in Canada, and although it was reducing its number of stores, it was still clocking in some very solid revenue. Competition in Canada is nothing compared to the U.S.”
This is unfortunate since its really caused by the problems in the U.S.

I rent from BB about 3 or 4 times a month so I sure hope it stays around. I love renting Blu-ray discs and don't want to have to rent lower quality digital downloads.
 

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I rent from BB about 3 or 4 times a month so I sure hope it stays around. I love renting Blu-ray discs and don't want to have to rent lower quality digital downloads.
Agreed! Give me quality over convienence.
 

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I wonder if there is a good business model for the mom & pop video store of years gone by to re-emerge and fill the Blockbuster vacuum?
 

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My guess is BB will stay in business. They're making money in this country so I'm certain someone will pick them up (maybe rationalize a bit) and keep them running.
 

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I Hope so, I do think that someone will pick it up, as the artical mentions the market here is still substantially different then south of the border. But isn't just like the studios to probably go after one of its bigger customers in the name of short term profits.
Iam sure Blockbuster probably buys thousands of copies of non-blockbuster dog stupid movies that you and I as individules wouldn't even consider wasting our money on but blockbuster buys to just cater to the rental market thus generation big dollars to the studios for movies that would otherwise be financial flops both in the theaters and on video release.
 

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I wouldn't be surprised if the studios or someone close to them took over Blockbuster. They like to be vertically integrated and Canada is still a wide open market for alternative movie distribution options.
 

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from wikipedia

Several movie studios achieved vertical integration by acquiring and constructing theatre chains. The so-called "Big Five" theatre chains of the 1920s and 1930s were all owned by studios: Paramount, Warner, Loews (which owned Metro-Goldwyn-Mayer), Fox, and RKO. All were broken up as a result of the U.S. Supreme Court's ruling in the 1948 United States v. Paramount Pictures, Inc. anti-trust case.
i think that same ruling prevented the studios from owning BB in the U.S. so despite the fact that things have changed in the Internet Age I doubt they are interested anymore.



Rogers has their Rogers stores, Bell has the Source and Bell World, I wonder if Telus might be interested in them. Then they could shut out Wind Mobile and sell their wireless devices.
 

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This really isn't much different that the situation with The Source a little while back. The US parent company's bankruptcy forces a viable Canadian business unit into receivership.

I suspect the end result will be the same. Someone will purchase the Canadian business due to its continuing viability.
 

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I suppose/hope BB may survive in one form or another. I will only snobbishly rent videos in Blu-Ray.

But, has anyone noticed that Rogers has been dropping video store locations in their area? The two closest Rogers video locations to me in Oakville -- one small but one large -- have been closed. They are in opposite directions from me, so it isn't as if they were too close to each other.

Perhaps they don't do enough home phone and cable business in a region that is Cogeco territory?

Rich
 

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Some confusing and inaccurate information was posted and was removed.

As noted in the subject, this thread is about Blockbuster Canada NOT Blockbuster in the U.S..
 

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I drive by a Blockbuster every day, and it appears to be open for business as usual. Is anything changing with the retail stores at all at this time?
 

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See link in Post #1.
 

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Blockbusted!

I agree with Stampeder ... Blockbuster Canada makes a good vacuum. It really sucks. :rolleyes:

Most people drive by Blockbuster every day ... that's why it's going out of business. ;)

I kid because it was living on borrowed time anyway. Profit? Show me the money! Will anybody be daring enough to try to Captain this version of the Titanic?

The two Blockbusters in my area are still alive. I will eventually rent from them in the future if they are still around.

http://www.torontosun.com/2011/05/09/wind-not-interested-in-blockbuster
[Gone with the Wind Mobile.]

Wind Mobile chief executive Ken Campbell quashed rumours Monday his foreign-backed cellphone company would throw its hat in the ring to pick up Blockbuster Canada once the retailer goes up for sale.

"We don't expect to be involved," Campbell told QMI Agency Monday, adding Globalive has no plans for Blockbuster other than to continue selling Wind products in Blockbuster locations when it emerges with new owners.

Campbell said he was somewhat surprised to learn one of his partner retailers was in hot water.

"Obviously everybody knows about their situation in the U.S. They are, however, doing differently in Canada, so (I was) a little bit surprised but it's not entirely unexpected," he said.

Wayne Gudbranson, president and CEO of international technology strategy and marketing consulting firm Branham Group Inc., told QMI Agency back in September it was only a matter of time before Blockbuster Canada followed in its parent company's footsteps.

The DVD rental store model just doesn't work anymore, he said again Monday. Video-on-demand and video streaming services like Netflix are making trips to the video store obsolete, Gudbranson said.
 

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PokerFace, read both articles. BB Canada went into receivership because of the U.S. using it as collateral.
 

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Profit, shmofit!

Right, but when Blockbuster Canada claimed that the US bankruptcy had nothing to do with them and then they offered the $9.99 Unlimited plan to make sure they didn't lose any more people to Netflix, that's when I got worried.

Then, when Blockbuster USA was put up for auction (I assumed that Blockbuster Canada was part of that auction somehow based on the lack of spinning), that's when Blockbuster Canada shut up and didn't say that they were unaffected by the possible liquidation. It's stuff like that, and the talk of a possible streaming venture that make me disbelieve everything that comes from Blockbuster Canada.

While they might have been doing well at the time of their $9.99 Unlimited plan (they apparently sold 50,000 of them rather quickly), I no longer believe that they would be able to sustain themselves far beyond 2011.

Stores were closed and none were opened, whereas last year, there were some new stores that were opened to help carry the load.

No. I'm just not buying what Blockbuster Canada is selling. I hope they stay in business (though I could certainly do without those annoying Rental-only copies that are stripped of the extras as well as most of the stripped retail Canadian versions they are forced to carry), but unless the new owners grow a brain, I doubt that they will survive.
 

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My nephew works at BB. A week or so ago they were told not to sell anything like gift cards etc. Nothing that would create a future liability.
 

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thats unusual...most times they continue to sell gift cards to generate income flow. Because if they close the doors those gift cards become ice scrappers.
 

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Don't forget to turn off the lights when you leave the buildings

http://www.theglobeandmail.com/report-on-business/blockbuster-canadas-creditors-number-more-than-1300/article2025693/
[Blockbuster Canada’s creditors number more than 1,300]

A collection agency hired to persuade movie renters to pay their late fees is among the 1,309 unsecured creditors who are owed money by Blockbuster Canada.

The video rental chain was pushed into receivership earlier this month after Hollywood movie studios called in $70-million in debt racked up by its parent company that had been secured against the Canadian operations.

While the U.S. chain was losing money as consumers opted for alternatives such as mail-order DVDs, mall kiosks and Internet services such as Netflix, the Canadian operations had $117-million in assets – including $15-million in cash – when pushed into receivership, according to documents filed this week by receiver Grant Thornton.

Blockbuster Canada is essentially being sold to service the U.S. debt, after its parent company was sold to Dish Networks earlier this month.

Maple Pictures Corp., a Canadian film distributor, is shown as being owed $436,227. Credit Bureau Collections is listed with $194,150 owing.

Only a third of the entries on the unsecured creditors’ list have specific amounts associated with their names; the rest are shown as being owed $1 each.
 

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May Day! Abandon Ship!

Several more Blockbuster Canada stores will be closed this week, and apparently close to a hundred more will close before the end of this month (Greater Toronto Area, Calgary, Quebec, etc.). Get ready for the Going-out-of business sales this month!

Not to mention the fact that Blockbuster Canada just filed for Chapter 15 bankruptcy in the States, it sounds like the fat lady is singing her song and it appears that only a handful of stores will survive the May purge (a downtown Toronto store and the Yonge & Cummer store in Toronto might just be a few of the survivors).

I just rented a few things yesterday to pay my last respects.

RIP Blockbuster.
 
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