Blockbuster Canada Not Safe After All
The Globe And Mail reported that Blockbuster Canada has gone into receivership.
It appears that when Blockbuster restructed in the United States in September 2010 they had used the profitable Canadian operation as collateral. And now the studios have decided to sell Blockbuster Canada to recoup some of their losses.
Blockbuster Canada had issued a statement last September that their operations would be unaffected by the restructuring of the American operation. But had in April issued a notice to customer that they would not be issueing gift cards or Blockbuster Rewards memberships by April 30th, 2011.
Blockbuster Canada Unaffected
Blockbuster Canada has published a press release re-assuring their customers that the Canadian operations are unaffected by the Chapter 11 Process in the United States.
Apparently the Canadian subsidiary is still profitable, at 440 stores through-out Canada.