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Blockbuster Seeks Three-month Extension on Store Leases

14 Apr, 2011 By: Erik Gruenwedel


More than 1,700 stores could remain or be shuttered by July 20


Bankrupt Blockbuster Inc. is seeking court approval to extend the deadline when it must decide whether to renew or terminate the leases of more than 1,700 stores operating in the United States.

Dallas-based Blockbuster, in an April 13 filing with U.S. Bankruptcy Court in New York, is requesting Judge Burton Lifland extend the deadline to July 20 from its current April 20 deadline.

Under bankruptcy law, a debtor has the right to renew or terminate business leases with participating third parties in accordance with set deadlines.

In the filing, Blockbuster said having flexibility surrounding lease renewals was paramount to its successful $320 million asset sale to Dish Network on April 6. The cable operator has indicated willingness to maintain Blockbuster store operations.

The court will hear any objections to the extension request April 21.
 


About the Author: Erik Gruenwedel


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