Slurpee Former Chief To Save Blockbuster?

Back in May, Blockbuster BBI (NYSE) forced its Chairman and CEO John F. Antioco out of office after pressure from outside investor Carl Icahn and the its board of directors. Today Blockbuster announced that it has hired James W. Keyes, a former CEO of Seven Eleven to become the company's CEO and Chairman. Keyes, who left Seven Eleven in 2005 after it it was bought, is known as a keen retailer who successfully ran a national network of small-box retail locations where he managed to introduce new products and new technology to an industry constantly under change.

At first glance, his appointment appears to be a very good choice. Blockbuster is currently working hard to make its latest strategy known as Total Access a success against its prime competitor Netflix. Through continuing marketing efforts the company has tried to convince consumers that its retail store network offers an added advantage for consumers when using Blockbuster's online rental service. Unlike Netflix consumers can go to their neighborhood Blockbuster store to return a DVD rather than wait for returning the DVD by mail. For now the concept sounds like a hard sell when you consider that Blcokbuster to stop the bleeding is closing many of its stores to remain competitive. Keyes does offer a background in technology and retailing which at a minimum can only be helpful to the company and an improvement overall Antioco. Keyes has a tremendous challenge ahead of him. Blockbuster does not even have a movie download system under development. Keyes does have one additional thing going for him, he appears to have the confidenc eof Carl Icahn and board.

We will just have to wait and see.

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