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Blockbuster Shuttering Distribution Center

12 Mar, 2012 By: Erik Gruenwedel

Blockbuster LLC is closing a disc distribution center located in the Dallas suburb (McKinney) of its corporate office — a move that will idle 171 employees.

Blockbuster, which is owned by satellite TV operator Dish Network Corp., disclosed the pending May 7 closure in a March 7 filing with the Texas Workforce Commission.

The nation’s largest movie rental chain last month said it would close a third of its remaining 1,500 Blockbuster stores by the middle of the year due to underperformance.

The venerable brand — synonymous with movie rentals — is attempting to remain relevant in a rental market increasingly dominated by Redbox kiosks and Netflix streaming. Dish is using recently launched in-store Blockbuster Movie Pass and Blockbuster@ Home subscription VOD programs to lure and retain satellite TV subs.

All affected staff at the McKinney center will be notified within 14 days of the center’s closure with Blockbuster working internally and with the commission to find alternative employment options, according to the filing.

Blockbuster last year moved its corporate headquarters from Dallas to McKinney following its acquisition out of bankruptcy by Dish.

A Dish spokesperson was not immediately available for comment.

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