What would you expect Dish to do? Keep it open only to lose money. Video store rentals are a dying model how many hundreds of stores local and national have gone. How is Dish the worst company for having tried to keep it going? Maybe they should have not bought it so these people would have lost their jobs sooner!
The trouble is, BBV doesn't have to lose money. There is a regional chain, Family Video, that has several stores in my area and they have been growing in the last few years. Of course, they haven't spent money remodeling their stores several times in the last few years and don't have 1/3rd of the store devoted to selling used merchandise. I wouldn't doubt that their stores have double the inventory a typical BBV store has. And whenever I visit a Family Video, the store is busy. Even on a Friday or Saturday night, my local BBV's are semi-empty. And they're ghost towns any other time. Rental choices attract customers, not used dvd deals. I bet after this round of closings Family Video will have more stores than BBV.
While I agree that the b&m model isn't strong and will eventually disappear, deciding what direction a chain wants to go and then doing it helps out. Dish has changed what they want to do with BBV several times since they purchased it. Tough to make money when you don't even know what your purpose is.
But to honest, IMO, Dish bought Blockbuster for the name. They've been looking for a a way to get rid of the retail aspect of it from the start. Did Dish really want the b&m stores to become successful? The inventory at the stores has been regularly reduced since the purchase. The innovation used to create Autohop and PTAT could have made the chain a profitable entity.