In the meantime, between 810 and 950 retail stores will be shuttered between now and then. "We have the benefit of short-term leases in existing stores," Casey explained, adding that cash flow also comes from liquidating inventory. The challenge, however, is transferring revenue from closed stores to stores still in operation, he remarked.

The reason for the closures is, of course, economic. Blockbuster's financial troubles have been well-documented, as the company has struggled with the economic downturn and encroaching competition from NetFlix Inc. and Redbox Automated Retail, LLC. Casey acknowled that "the story of 2009 has been to preserve cash, get refinancing done and live to fight another day."

The combination of store closures and debt restructuring should put Blockbuster in a pretty good position to join rival RedBox in the kiosk arena. Casey said Blockbuster's relationships with the major studios, as well as brand recognition will help it compete handily with Redbox, which has a claim to fame of offering movies through kiosks in grocery stores.

"The customer goes to kiosks as an impulse buy, and the dollar-a-day proposition is attractive," Casey remarks. "We really believe that's an emerging window."