Blockbuster has unveiled its results for the year to December 31, 2011 confirming it plans to close 500 underperforming rental stores during the first half of 2012. This number accounts for about one-third of the retailer’s US store portfolio.

Blockbuster’s new parent company Dish Network reported an 11% increase in net sales for its full year 2011 to $14.05bn (£8.87bn). Consolidated from April 26, 2011 Blockbuster contributed $975m (£614.5m) in revenue and $4m (£2.53m) in net income during the period. The retailer ended the year with $196.8m (£124.3m) in inventory. Dish Network said that the store closures would have little impact on Blockbuster’s business as they related to outlets with favourable termination rights.