By Jeff Labrecque
Updated April 06, 2011 at 01:02 PM EDT

Blockbuster Inc., which filed for bankruptcy last September, was purchased at auction by Dish Network for $320 million. “With its more than 1,700 store locations, a highly recognizable brand and multiple methods of delivery, Blockbuster will complement our existing video offerings while presenting cross-marketing and service extension opportunities for Dish Network,” Tom Cullen, an executive vice president at the company, said in a statement. “While Blockbuster’s business faces significant challenges, we look forward to working with its employees to re-establish Blockbuster’s brand as a leader in video entertainment.”

The once-dominant video-rental chain has seen its profits evaporate after the introduction of cheaper, more convenient competitors, like Netflix and DVD vending machines. A bankruptcy court still needs to approve the Dish Network purchase.