Blockbuster Bankruptcy Looms

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Blockbuster Bankruptcy Looms

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Rumors are swirling that the once-mighty Blockbuster is preparing to file for bankruptcy within the next 30 days.

My, how times change. Blockbuster, once the big boy on the video rental block, has fallen on awfully hard times of late. In April of last year the company revealed that it was staggering under a massive debt load of $781 million, and then in September it announced the closure of nearly 1000 stores, a fifth of its overall total. Despite the tough times, bankruptcy may have seemed like a distant and unlikely possibility at the time, but not anymore. A report by Home Media Magazine says the company is expected to announce a "forbearance agreement with select creditors" this week as it gears up to file for bankruptcy within the next month.

Blockbuster is preparing a "pre-packaged bankruptcy," which the report says could be a tough sell because it requires that all creditors agree on a strategy that is "mutually beneficial and least disruptive." The company is struggling to keep the lights on as it tries to move away from conventional stores to "a multiplatform distribution strategy." Blockbuster was delisted by the New York Stock Exchange on July 1 and entered into its current forbearance agreement in order to avoid having to fork over a $42 million interest payment, but that agreement is set to expire on August 13.

Wedbush Morgan analyst Michael Pachter said he expects the agreement to be extended long enough to allow the company to begin bankruptcy proceedings after it announces its second quarter results after the close of markets on August 12. The forbearance agreement will keep unsecured creditors from triggering provisions that would force a Chapter 7 bankruptcy filing, which would almost certainly lead to the liquidation of the company. There is hope, however; Pachter also said that he believes the company will be able to recapitalize by mid-September and, if everything goes according to plan, may be able to avoid entering bankruptcy protection entirely.

Blockbuster recently added a library of over 3000 videogames to its By Mail subscription service. Whether the move was made in time to help bring the company back from the brink remains to be seen.

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Well hello to sweet justice. A company uses asshole tactics to ground other video rentals into the dirt, and then fails to adapt properly to when people decide they prefer mail service. No surprise here and I doubt their last minute effort at adding to their inventory will change things.
Blockbuster is going DOWN!

Frankly I wouldn't be surprised to see it getting sold to either Netflix or such after this month.

Now who's going to clean the damaged pre-owned games I bought?

Well, I cannot say I am surprised...the whole rental thing has been going downhill so badly. I have to admit, I never rent...

Really dumb question time.

Are Blockbuster US and Blockbuster UK registered as separate companies? Blockbuster in the UK always seems to have done quite well, they reported a supposedly 'best year ever' last year.

Ah well, if they fold I can always just get a LoveFilm account instead...

Everytime I go into Blockbuster whatever I want to rent is out.

If they're stupid enough to get one copy, and only one copy, of Red Dead Redemption....well, no wonder people are swapping to mail order renters.

Serves them right.

Who seriously charges £24 for ONE GAME thats overdue by four days?

Blockbuster can go die.

The rise of LoveFilm services has obviously made them redundant.

Never nice to see a business go under though. Yes, it's bad for the people on top but it's the people on the bottom who really suffer.

fix-the-spade:
Really dumb question time.

Are Blockbuster US and Blockbuster UK registered as separate companies? Blockbuster in the UK always seems to have done quite well, they reported a supposedly 'best year ever' last year.

If Blockbuster US is anything like Blockbuster UK, the sentiment of their deserving to fail is at least on the cards. Them and their horrifically over-priced products...

I kinda feel bad for a friend of mine who works at a Blockbuster at the moment. With that said, one of the 1000 stores they closed was in my town... and I got some pretty sweet deals on some BluRays.

First Hollywood Video and GameCrazy and now this. Dang...

Not to shamelessly parrot an existing meme, but...this almost gives me hope for humanity. Almost. It's certainly gratifying to see shameless greedheads scramble to polish up their burning turd of company...though I can't help but wonder where bored, suburban teenagers who've watched too many Kevin Smith films go to find work now?

who is Chapter 7 bankruptcy

They were stupid to resist change to secure profitability in the short term. Weren't they the last ones to actually allow rentals and such to be made online and so on?

David DeMoss:
Not to shamelessly parrot an existing meme, but...this almost gives me hope for humanity. Almost. It's certainly gratifying to see shameless greedheads scramble to polish up their burning turd of company...though I can't help but wonder where bored, suburban teenagers who've watched too many Kevin Smith films go to find work now?

Are they the same greedheads in charge? People who are out to screw you often know when to jump ship.

The only people I feel bad for are the people who are going to lose their jobs when they finally go banktrupt. I don't even bother renting anything any more, I'd rather just suck it up and buy whatever it is I'm after.

Well that kinda sucks. I liked Blockbuster. Sure they didn't have that large a selection, but I still liked being able to physically browse through there store, it's easier then browsing through Netflix.

good. i only trust vending machines with my rentals now.

My local blockbuster was changed into a kebab shop.

Who the fuck rent's anyway.

It's a false economy. You pay about half the price but you don't own the product... I'd rather not playa game to a time limit.

Whose surprised? I thought they were bankrupt a while ago.

Game rentals were super awesome back in the day, riding my bike to the mom and pop video store to get the latest NES game, but in the long run they are as bad for publishers as piracy.

OnLive seems like a good alternative but their prices are ridiculous.

Blockbuster didn't want to evolve, and Netflix came along and ate their lunch. If only they'd actually made an effort to get on the rent-by-mail and download-on-demand roads, things might've turned out different today.

Ah well. I have fond memories of renting VHS tapes and SNES games from them, but the times, they have a-changed.

Hope they manage to come together, I always liked thier stores..... (First Rogers and now this? What the hell a I supposed to fo for renting stuff now?)

God dammit. Now I'll have to go online to rent games. First Hollywood Video, now even Blockbuster. How very sad.

Hmm...I honestly never liked Blockbuster in my home town. Last time I went there I had to go back to the store three times on one day because the copies of Final Fantasy X I rented were all faulty. It was pretty much brand new out as well so I have no idea how they managed it.

(Little off-topic, I did go in to Blockbuster last week and noticed that they had 23 copies of Assassin's Creed 2 in the bargin bin. 23 is a lot...)

fix-the-spade:
Really dumb question time.

Are Blockbuster US and Blockbuster UK registered as separate companies? Blockbuster in the UK always seems to have done quite well, they reported a supposedly 'best year ever' last year.

Ah well, if they fold I can always just get a LoveFilm account instead...

They were doing well? Really? Are you from London? Because I live in London and haven't seen a BlockBuster Video for years (literally both stores near me closed down without a word). At least they were around somewhere.

Anyway, take a look at this, and realise the fail that is BlockBuster Video. Really, you'll laugh.

The Rogue Wolf:
Blockbuster didn't want to evolve, and Netflix came along and ate their lunch. If only they'd actually made an effort to get on the rent-by-mail and download-on-demand roads, things might've turned out different today.

Ah well. I have fond memories of renting VHS tapes and SNES games from them, but the times, they have a-changed.

You know what my fond memories of renting games and VHS were from? The guy who always came down my road and rented games from the boot of his car. I call him Charles (because I didn't know his real name). Good times.

Lord Mountbatten Reborn:

fix-the-spade:
Really dumb question time.

Are Blockbuster US and Blockbuster UK registered as separate companies? Blockbuster in the UK always seems to have done quite well, they reported a supposedly 'best year ever' last year.

If Blockbuster US is anything like Blockbuster UK, the sentiment of their deserving to fail is at least on the cards. Them and their horrifically over-priced products...

Horrifically over priced products? Sure if you are talking about candy (they charge at least double) but check out their used games bins. Those things are an absolute goldmine of cheap decent titles. Usually cheaper than the same used game at GS or EB.

El Poncho:
My local blockbuster was changed into a kebab shop.

The BlockBuster that I was going to apply at got turned into a public art gallery. Or somthing. Nothing I'd be intrested in working at, that's for sure.
But this DOES kind of bite the big one. I'm not one to trust RedBox after what it did to my father, but I DID use them to get cheapo previewed B-movies.
Now I actually have to look for them.
I mean, they arn't bad stores, but.... stagnation and all.

Good Riddance I say. If you refuse to adapt to the ever changing market you deserve to go out of business. Plus the people who worked at the stores around me were such dicks.

2001 a dozen companies that own and operate movie theaters were in bankruptcy, including Regal Cinemas, Edwards Theaters and United Artists When all three chains went into bankruptcy, investor Philip Anschutz bought substantial investments in all three companies, becoming majority owner. In March 2002, Anschutz announced plans to consolidate all three of his theatre holdings under a new parent company, Regal Entertainment Group. Regal's Mike Campbell and UA's Kurt Hall were named co-CEOs

I just want A video store here, Holly Wood Video is going out, and Blockbuster closed down already.

Cliff_m85:
Everytime I go into Blockbuster whatever I want to rent is out.

If they're stupid enough to get one copy, and only one copy, of Red Dead Redemption....well, no wonder people are swapping to mail order renters.

are you stalking me?

I have to keep a look-out then, maybe I can get crazy deals on movies when the local one closes.

I remember we used to have an independent video rental store in the area. $0.75 week-long rentals of classics. That's how I saw the Indiana Jones trilogy. Then suddenly, Blockbuster appears and saps all of the business away. Now it costs $3.99. The next year? $4.99. Then $5.99 and up. We stopped renting movies. Hell, I started buying movies that I haven't even seen because it's cheaper than renting.

Huh.

Not affected personally, but I guess teenagers will have to look for someplace else to get an easy job.

When I was a kid, Blockbuster reigned supreme. Looks like Hollywood Video and Netflix finally canned them. :(

Very sad, I had lots of fond memories renting PS1 games from Blockbuster...or checking out the weird movie sections.

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