Blockbuster may have to close 20 percent of stores - WKOW 27: Madison, WI Breaking News, Weather and Sports

Blockbuster may have to close 20 percent of stores

DALLAS, Texas (WKOW) -- The popular video rental chain Blockbuster is planning to close as many 960 stores by the end of 2010.

Those cuts would reduce the company's size by more than 20 percent. Stiff competition from Netflix and Redbox are to blame.

The store closures disclosed in documents filed Tuesday shows Blockbuster is having to cut much deeper than it anticipated to save money and keep its lenders happy.

Blockbuster now expects to close between 810 and 960 of its U.S. stores through 2010, up from its the 380 to 425 stores that normally would be closed.

The Dallas-based company has closed 276 of its 4,356 stores so far this year.

Powered by Frankly