Renting a movie for a quiet night in may pose a problem for St. Albertans, depending on the outcome of bankruptcy hearings now under way.
Blockbuster Canada, which operates both Blockbuster Video stores in the city along with hundreds more across the country, was placed into receivership on Tuesday following an Ontario court ruling.
The two Blockbuster outlets are the only stores in the city that exclusively offer video and game rentals after a Roger's Video store closed earlier this year.
The bankruptcy comes after the American parent company made a similar move last September.
The Canadian arm of the company had outstanding debts to several film studios adding up to $67 million — a sum that was a major factor in the company's bankruptcy filing.
Business as usual
The law firm, Grant Thornton LLP, based out of Toronto, is now handling the process, and in a statement announcing their appointment indicated business as usual for local customers.
"The company's stores are open for business. The receiver expects to initiate a process in the near term to identify parties interested in purchasing Blockbuster Canada's enterprise and assets."
The firm has the authority to inventory and sell assets as it deems fit and will control the company until its final fate is known.
Blockbuster only recently emerged from bankruptcy protection after being sold to U.S. company Dish network.
In a statement on its website the video chain indicated their stores would remain open, but they would no longer sell gift cards, though they would honour any outstanding ones.
"All of the Blockbuster stores across Canada will continue to honour outstanding gift cards, Blockbuster Rewards coupons, and other customer programs during this period. Blockbuster customers will currently receive full value for all previously purchased gift cards and programs. Warranties and exchanges will not be impacted by this change."
A manager at a local Blockbuster declined to comment on the changes.
