When Blockbuster in the USA announced its insolvency last year, I knew that the future would not bode well for its Canadian counterpart. As the video and game rentals market continues to take hits from the expansion of the digital market, Blockbuster Canada Co.‘s Receiver, Grant Thornton Limited, has been authourized to initiate a process to identify parties interested in purchasing Blockbuster Canada’s assets and operations.
On May 3, 2011, Grant Thornton Limited was appointed as Receiver of Blockbuster Canada Co. pursuant to a Court Order made by the Ontario Superior Court of Justice which made a further Order on May 20, 2011 approving a sale process recommended by the Receiver. While Blockbuster Canada will be consolidating certain stores in the next few weeks, the majority of its stores are continuing to operate in the ordinary course during the process.
“We appreciate the ongoing support of Blockbuster Canada’s customers, employees, suppliers and other stakeholders during this period” said Michael Creber on behalf of Grant Thornton Limited. “We are hopeful that the process approved last Friday will result in resolution of the issues currently facing Blockbuster Canada Co.”
We have a Blockbuster here in Aldergrove, but we’ve watched as rental store after rental store has closed. The local Movie Gallery outlet closed about two years ago, leaving behind a storefront that has been vacant ever since. Prior to that, two other smaller, privately owned stores closed up shop. If our local Blockbuster outlet also closes, that will leave one privately owned rental service in town, and it recently decreased its floorspace.