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Blockbuster in Farragut closed over weekend


Farragut’s Blockbuster Video has closed.

“As part of the recapitalization process, Blockbuster will be evaluating its U.S. store portfolio with a view towards enhancing the overall profitability of the store operations,” a Blockbuster spokesman said in an e-mail.

The spokesman, who did not give a name but responded to an e-mail to Blockbuster’s corporate communications department, said the store closed March 13. It was a corporate location.

Blockbuster’s locations in Lenoir City and off Northshore Drive will remain open.

The closure follows a February announcement that Blockbuster Inc. had initiated a process to sell the company. Blockbuster Inc. filed for Chapter 11 bankruptcy last September.

According to a press release on blockbuster’s website, www.blockbuster.com, “Blockbuster has entered into an asset purchase agreement with a ‘stalking horse’ bidder, Cobalt Video Holdco, LLC,” the release stated.

Cobalt has agreed to purchase substantially all of the assets of Blockbuster Inc. and its U.S. and international subsidiaries for $290 million, subject to adjustment.

Jim Keyes, Blockbuster chairman and CEO, commented in the release, “By initiating a sale process at this time, we intend to accelerate our Chapter 11 proceedings and move the company forward. 


“An auction will allow the company to invite competing bids from both strategic and financial investors. This will also allow for the consolidation of ownership of the company to those with a clear and focused vision for Blockbuster’s future,” he added.

The release stated that U.S. operations of Blockbuster, including a majority of its stores, DVD vending kiosks, by-mail and digital businesses, will continue to operate normally during the sale process.

“Blockbuster franchise locations in both the U.S. and abroad are independently owned, operated and funded, and will also continue normal business operations,” the release stated.

A final sale approval hearing is anticipated to take place shortly after the auction with the closing anticipated to occur no later than April 20, 2011.

 

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