Blockbuster’s Borderline Bankrupt

08.27.10 7 years ago 24 Comments

I couldn’t tell you the last time I walked into a Blockbuster to rent a movie. And it probably doesn’t help their cause that I still have unreturned VHS copies of Rosewood, Big Daddy & Get On The Bus sitting in a box in the garage. Did I cause the company to go broke, as the one-time video giant’s rumored to be on the brink of filing Chapter 11 bankruptcy?

“Here’s how much the landscape of Hollywood’s homevideo biz has shifted over the years: Netflix is readying to pay Epix $1 billion for a slate of movies, while Blockbuster is being taken down by $1 billion in debt.

Blockbuster has alerted studios that it plans to file for bankruptcy in mid-September. Sources told Daily Variety that the long expected move to file for Chapter 11 bankruptcy is underway. Blockbuster has struggled to deal with its $1 billion debt load and figure out a way to fend off fast-growing rivals like Netflix and Redbox, who cater to customers who prefer not to visit one of the homevideo chain’s 3,425 stores.

Through the restructuring process, as many as 800 stores could close and the rest of the company’s assets could be divided among debt holders. The company had already shuttered 1,000 stores.”

Read the rest at Variety

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