Blockbuster prepares for bankruptcy

[Tuffty]

According to sources close to the matter, Blockbuster is preparing to file for bankruptcy in the next month.

Senior debt holders, company execs and the six major movie studios have all discussed Blockbuster's intentions to prepare a "pre-planned" bankruptcy in September.

The company will use Chapter 11 to restructure $990 million in debt and break leases on over 500 stores. The company has lost over $1 billion since 2008.

If the six studios decide to drop support for Blockbuster, the company will never emerge from bankruptcy, as it will lose its constant stream of DVDs and Blu-rays.

Blockbuster currently has 3425 brick-and-mortar stores in the U.S., and that is after they closed almost 1000 in the last year, alone. CEO Jim Keyes, say the sources via the LATimes, wants to use the bankruptcy to close up to 800 of the worst performing stores around the nation.

The company has fallen a long way from the top, with its current market value placed at around $15.31 million. Blockbuster was purchased in 1994 by Viacom for $8.4 billion.

[rndmnwierd]

Well, damn, now where shall I get my movies from. *looks at Netflix* Hey, aren't you the reason why Blockbuster started doing badly in the first place, taking all their customers due to your convenience?

Netflix: Why yes, sorry Blockbuster. *waves* Now, how about a subscription?

No, that's okay, I get my movies from The Pirate Bay anyway.



In all seriousness, this fills me with a sort of ominous feeling. Bankruptcy is never a good thing and so many more people will be without jobs now. Besides that, Blockbuster feels as though it's been around forever.

[Amplifier]

This has been a long time coming, and isn't surprising at all. I remember my manager at Gamestop, who worked for Blockbuster before or something, said this would happen. And that was like five years ago

[Tuffty]

[THUNDERDUCK]

Blockbuster is a cautionary tale of a business model that failed to anticipate the advances of technology [ie online streaming], cost saving [ie Netflix].  Netflix managed to adapt to an online business, with mail costs increasing.  Now Blockbuster is trying to copy redbox, with the kiosk.

[1mind]

no blockbuster! the memories

[shadowstar]

I'm curious. How is Netflix better than Blockbuster?

[Scramasax]

Cheaper, depending on how many movies you rent a month, and a LOT of movies can be streamed over the internet.  I don't have it personally, but two friends do and I abuse theirs.

[john_hung]

when i had netflix it was so convienient...you make your list of movies (it even gives you suggestions based on what you've rented before) and they send you however many you get depending on your plan, and when you send em back they send the next one(s) on the list...some you can even stream online or thru an xbox 360 or whatever...plus they have alot of foreign/obscure/hard-to find movies...when i was getting them (i had the one movie at a time plan), i got them 2 days after i sent it in - say i sent in a movie on monday, i'd have the other one wed. or thursday at the latest...the cancelled my membership is because i don't really like to just sit and look at the tv for too long, but they have A LOT of movies. i'd recommend it to people who enjoy watching movies alot 

[shurastriker]

blockbuster was the biggest fail in my city... i remember having a copy that forgot to return like one month i just drop it on the box thing and never ever rented again (2 months later it turned in to a bank and nowadays is a restaurant)

but yeah, i can buy movies and music at the corner, much better that endless download

[yokolover120]

This sucks Blockbuster use to be the coolest place the rent movies and games from. Good thing I don't rent movies or games anymore or else I would even be more upset. Maybe this is why they went bankrupt. 

[Sici]

All the local Blockbusters in my town has closed shop early this summer. I am sad I missed the sales, they were selling brand new games for really cheap!

[dawnofice]

Heard about this, now that no1 rents dvds. Well I dont anymore because of the speed of the internet and the quota

[Malachite]

Video rental stores don't really have a place in the 21st century. It's all about the internet now.

They had a good run but technological progress has been their undoing.