Blockbuster’s implosion over the last few months has had a ripple effect that goes beyond the home entertainment industry. California-based supermarket chain Safeway has filed a motion that claims a new round of BB location closures will have a negative impact on its business.
The motion, filed on December 31 in the New York U.S. Bankruptcy Court, objects to the closures on the grounds that the shuttered BB stores, many of which are tenants in Safeway-owned shopping centers, will “diminish” the reputation of its shopping centers and disrupt adjoining businesses.
Safeway wants Blockbuster to drastically cut back the scope of the “going out of business” sales taking place at its locations where Safeway is the landlord.
From the filing:
“[Blockbuster] could literally transfer a majority of the goods to be liquidated from other stores to the affected … locations, thus disrupting the use of loading docks and non-public access to the affected premises and misleading the public as to the true nature of the liquidation,”
Does Safeway’s concern seem like a legitimate one, Insiders? More importantly, will a judge see it that way?
(via Home Media Magazine)