09/09/2006

Blockbuster stores shutting down

Stores in northern Michigan are shutting doors

By sheri mcwhirter

sherimcwhirter@hotmail.com

and patrick sullivan

psullivan@record-eagle.com

Record-Eagle/Jan-Michael Stump
The Blockbuster at 3375 South Airport Road near U.S. 31 in Traverse City remains open as of now.

TRAVERSE CITY — You can't rent or buy movies and games at many Blockbuster stores across northern Michigan anymore.

But you can rent or buy the buildings.

Sixteen franchised Blockbuster stores dotted area communities, and more than half closed this week.

"The rest will eventually close, but they have not at this point," said Randy Hargrove, Blockbuster spokesman.

He said the decision to close the stores and end Blockbuster's regional presence was made locally.

"After 23 years in the video rental industry, our franchisee in northern Michigan decided to retire," he said.

Calls to the corporate offices of Horizon Video in Traverse City were not returned. Company owners declined to be interviewed, Hargrove said. David Scheppe, 51, of Elk Rapids, is listed on state records as the company's resident agent.

In Traverse City, a Blockbuster store at U.S. 31 and Holiday Road remains open, but a board behind the cash registers that lists movies that are "new releases" or "coming soon" is blank.

Mike Bryan dropped his daughter off to work at the store Friday afternoon, and he said his daughter knows the store might be closing.

"She's heard rumors, yeah," Bryan said. "I don't know what the issue is. It's just an odd thing."

Eleven stores closed this week, including sites in Cheboygan, East Jordan, Gaylord, Grayling, Kalkaska, Sault Ste. Marie, Traverse City, Whitehall, West Branch and two stores in Petoskey.

Stores likely to close soon are in Boyne City, Cadillac and three stores in Traverse City.

"We would have liked to continue to have a presence in northern Michigan," Hargrove said.

The store that has already closed in Traverse City is on South Airport Road near the Cherryland Center.

At the South Airport store near the Grand Traverse Mall, customer Stephen Pell said he was disappointed to learn it may soon close because it is the most convenient store for him to visit.

"This is the main rental store that I go to, because my house is right next to the mall," Pell said.

A clerk at one of the stores said he could not comment, but he said even if he could, he didn't know anything.

"We know nothing," he said. "We're open and as far as I know we're going to stay open."

Hargrove said there are no current plans to reopen any Blockbuster facilities in northern Michigan. The company will still have more than 150 downstate locations after Horizon's final franchise store closures.

About 150 people were employed at the 16 northern Michigan stores.

Movie- and game-renters flocked this week to Family Video stores and that company gained a number of new members, said Bob Kording, vice-president of operations.

"We have seen an upsurge in new members," he said.

Kording said the Blockbuster stores owned by Horizon were always good competition for the Family Video chain and they did not expect the sudden closures.

"It was a surprise to us," he said.

Late fees remain a reality for Blockbuster customers who rented movies and games before the store closures. Charges will be turned over to a collection agency, if all movies and games are not returned.

Blockbuster patrons with reward program memberships or gift certificates may call a hotline to speak with customer service representatives. The number is (800) 406-6843.