Report: Blockbuster bankruptcy is imminent

[ChosenOne]

Blockbuster has plans to file for a pre-packaged bankruptcy in September, the Los Angeles Times is reporting. The company’s lost more than a billion dollars in the past two years. It’s closed nearly a thousand stores in the past year.

The paper is quoting unidentified sources who claim executive management is going the route of a pre-packaged bankruptcy filing, which will allow the company to reorganize in court and shed its debt burden.

 

Michael Pachter, an analyst with Wedbush Securities, said there’s no reason not to believe the news report. He added that Blockbuster has no way of reorganizing out of court given its current debt load. “They have senior secured debt and unsecured debt,” he said. “If you do anything out of bankruptcy to change the terms of the debt on one, it triggers a default on the other.”

 

As far as the shareholders who have been pushing to get guidance on what will happen to their interest in the company, Pachter said “they are probably not going to get much out of this.”

 

Business Journal

 

At least 2 out of 3 are still open in Reno/Sparks.

Edited August 28, 2010 by ChosenOne

[Hawks Fly High]

And they can thank netflix for that

[ChosenOne]

And they can thank netflix for that

 

Wrong imo.

 

RedBox has hurt them more than Netflix.

[reno]

I hate netflix, every new release is like a 2/3 month wait time if you don't get it on day one where I live at -_-. I'll be sad if blockbuster goes bankrupt.

[Poe]

Evolution, survival of the fittest.

[kingfish]

Their not going to go bankrupt. Did you read the article?

[SRV]

Good, blockbuster blows. I knew they sucked when it was like March 2010 and I went to rent FIFA 10 and they said they didn't have it yet, they only had FIFA 09. I used to live off Blockbuster, now I only go there by force.

Edited August 28, 2010 by SRV

[JYD]

Netflix, that redbox thing at groecery stores, on demand, and the economy has pretty much destroyed a place like blockbuster.

 

they closed the one near me about a year ago. I always want to run over there to rent a PS3 game, tehn remember it's not there. haha.

[bigdog17k]

I haven't been to a Blockbuster since like 2004.

[Riot]

Damn I haven't even heard of redbox before this thread. I googled it, looks pretty awesome actually, there's some in my town.

[GamerGuy]

Their not going to go bankrupt. Did you read the article?

They're probably preparing to file for Chapter 11, which is bankruptcy. If they can restructure and make it out of bankruptcy, they'll still be around. If they don't file for bankruptcy, they'll have to look for a new investor, or beg their debt owners to reduce their interest payments. At this point, that's not likely to happen.

[Lkr]

Damn I haven't even heard of redbox before this thread. I googled it, looks pretty awesome actually, there's some in my town.

Redbox is awesome. It is really easy to get free rentals too

[JYD]

I've never used Redbox, but I was told by a few friends about it and it's gotten really good reviews. It popped into my mind that that and netflix really killed blockbuster.

[Dash]

There is a Blockbuster 5 minutes out of my place that is actually flourishing even with a few Redboxes near by.

[Celtics3420]

Wasnt this all "imminent" like 3 years ago? lol. Seems like a dragged out bankruptcy, just do it already xD.

[Dr. Feelgood]

I used to go to the one close to my place because my cousin worked there, but once he quit, I never went there again. Then the store closed down about a year or two later.

 

I've only been to Redbox once and the DVD I rented, it skipped and I wasn't able to finish the movie at the time. Though the next day, it was on one of the movie channels on ON DEMAND and that's how I was able to finish the movie. I was able to get my dollar back though.