Blockbuster Fizzles Into Bankruptcy

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Blockbuster Fizzles Into Bankruptcy

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In a move that probably isn't surprising anyone, Blockbuster Video has filed for bankruptcy.

Despite the fact that Blockbuster Video recently announced its new mail-order system for videogames, its financial future still seemed to be on shaky ground. It seems that the predictions made last month were right-on, seeing as how the company has officially filed for Chapter 11 bankruptcy protection.

Up to this point, Blockbuster has been facing over $900 million of debt. Now that it's filed for Chapter 11, Blockbuster revealed that it plans to turn itself over to creditors, as well as reduce its debt by approximately $100 million when it comes out of bankruptcy next year.

The company has also revealed that it plans to close up to 800 stores; this is on top of the 1,000+ stores it's already shuttered. At the moment, though, around 3,300 stores are still operating around the country and employs over 25,000 people.

According to CEO Jim Keyes, this is "the optimal path" for the company.

"At this point it might be too little, too late," Mary Ross Gilbert, a managing director at Los Angeles-based investment bank Imperial Capital, told the Wall Street Journal. "They needed to take their mail-subscription business and evolve it to a streaming service. They needed to enter into consumer-electronic arrangements-it's not as pervasive as it should be. Why did they wait so long and stay on the retail platform instead of evolving with the rest of the world?"

Blockbuster's management might be being a little too optimistic about how the company's going to turn itself around. Even if it can shave $100 million off its debt, that still leaves $800 million to go, as well as the problem that a lot of people don't really want to go to its stores any longer.

Source: The Wall Street Journal

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Well we all saw this coming. DAMN YOU NETFLIX *shakes fist*

:( I love blockbuster though !!

DAMN YOU NETFLIX!

I love Blockbuster..... Why can't Netflix just leave us alone? LEAVE US ALOOONE!

Darn, I liked Blockbuster. Oh well, I don't rent games nearly as much anymore so I guess it doesn't matter to me much.

Look at the bright side: liquidation sales if there's still a store near your location.

NOOOOOOO!

Now how will I play whatever games as soon as they come out!?

I've have to buy them like everyone else.

Well Blockbuster, if that store down the road from me closes, you guys aren't getting that copy of Reach back.

The Austin:
DAMN YOU NETFLIX!

I love Blockbuster..... Why can't Netflix just leave us alone? LEAVE US ALOOONE!

Because it's just so gosh darn convenient and cheap. :D

vansau:
Look at the bright side: liquidation sales if there's still a store near your location.

Ooooo.. Good point. I hope my local Blockbuster goes away.

vansau:
Look at the bright side: liquidation sales if there's still a store near your location.

I can't wait for that liquadtion sale then.

ehh blockbuster isn't threatened up here in canada, until we get an equivalent to netflix. Sorry blockbuster I was in the states for 2 months with netflix and for 10 beans a month and nearly unlimited selection of films on my xbox instead of 5 bucks a rental, yeah I think I'd just get netflix.

vansau:
Look at the bright side: liquidation sales if there's still a store near your location.

Ooh, good call.

I'll abuse that one.

Didn't care for Blockbuster, SO HA!!!

vansau:
Look at the bright side: liquidation sales if there's still a store near your location.

But BB has no DS games.

I tried to get a job there several times, now I'm glad I was able to find work elsewhere.

Frank_Sinatra_:

The Austin:
DAMN YOU NETFLIX!

I love Blockbuster..... Why can't Netflix just leave us alone? LEAVE US ALOOONE!

Because it's just so gosh darn convenient and cheap. :D

I know..... *single tear*

NOOOO! Now where will I rent movies and video games? Okay, I can probably get them from Netflix, but STILL...

Kiss my ass, Blockbuster. The day it began to cost me $11 CDN to rent a game for three days is the day I said goodbye forever. I'll do just fine with downloadable game demos and places like Netflix, thank you.

I hope I'm not the only one who isn't disappointed by this.

yes, time to go pick me up some $2 movies and videogames...

It's always sad to hear about an all powerful business becoming Bankrupt and dieing. I was sad when Circuit City closed down all of it's shops (To be replaced with hhgregg), and I am sad here.

But, that's how capitalism works. It's not like all rentals are going down hill, just real life ones. Sorry Blockbuster, but you didn't play the game. We'll all miss you, and remember you as the Fore Father of Video Rentals.

holy shit, i didnt even know they were in financial troubles... Ohwel, companys cant be around forever... and its too easy to 'Rent' online now

Good riddance! Last time I was in Blockbuster, I tried to buy a game. Darksiders to be precise. It was the closest place to buy it and I was feeling lazy. The clerk said to me, "Darksiders? Really? Have you played it?"
"No" I replied.
"Well what if it sucks?"
"Huh?" I said, slightly confused at the line of questioning.
"Yeah, what if you hate it and it's terrible?"
"Then...then I guess thats a risk I'm willing to take as a consumer?"

Turns out this was a poor opening to discuss the store credit sell-back program, and he wouldn't ring up my shit for like 10 minutes. It ended with,
"Well I'll tell you what, before you go, if you REALLY don't like the game and feel that it was a waste of your money," (really, he said this) "and you bring it back here by 7:00pm, I can get you $25 store credit."

I said, "Well 7:00 is in 7 hours, and I just paid $50 plus tax. $25 for a 7 hour rental? yeah that sounds fucking awesome." and then I left and have never been back.
I'm approximating prices because I don't remember.

I know they're not a game shop, but every time I go to a blockbuster around here it's like they have no clue what customers want these days.

Yeah, I haven't gone to a Blockbuster in over seven years. They just weren't competitive with their prices. It wasn't Netflix that killed them, they were killed by other similar rental stores. There was no reason to go when a place down the street had the same thing for a few bucks cheaper.

Well, this is what happens when you fail to adapt.

Granted it kind of scares me too, since my store isn't exactly doing so great. Its not near failing, just not doing as good as it could be.

Too bad, because in most of Canada streaming services are unavailable, and due to the cost of internet unfeasible. Rogers video is it I guess.

Most of the BB stores around here already did the liquidation thing last year, since they've been collapsing in on themselves ever since Netflix came on the scene, though they've been losing market share to things like pay-per-view for years before that.

I doubt they'll emerge from bankruptcy looking anything like they do now.

vansau:
Look at the bright side: liquidation sales if there's still a store near your location.

That's exactly what I was thinking. I guess I'll actually finally be visiting BlockBuster regularly for the next while to see if they have any stuff on sale.

It doesnt help that when blockbuster was spun off into an independent company it was forced to absorb about a billion dollars in debt it didn't have before then, as well as give out a massive dividend to the stock holders of its old owner.

God I can't even remember the last time I was at a Blockbuster. I've been using Netflix and Gamefly for that stuff. So much more convenient...

What do you expect from a company that offers HORRIBLE customer service.

Around where I live, there is still a glimmer of hope for the time being. I'll at least take advantage of my movie/game pass until it's time to hit up the liquidation.

No matter what, it is a crying shame. Blockbuster has had something that I personally think makes them stand out and that is a reasonable offering. Used games and movies are a great deal there, while gamestop is still charging what Amazon.com wants for a new copy. And used movies? Blockbuster is a living GOLDMINE for movies, including cheap blu-ray prices used.

Bah! If anyone should have gone into bankruptcy, it's the likes of Gamestop. What's the point when online prices consistently have them beat and you cannot rent games either? Or what of "Redbox?" Those things do not have hi-def movies, let alone good ones...

seriously, if my blockbuster goes away, I will literally have NO place left to rent games.

that will make me a really really sad person.

So thousands of real people are losing real jobs against Netflix, a company that probably hires as many people as it takes to operate a gas station

C'mon massively slashed prices so I can walk out of the store with $500 worth of stuff for $20.

Good riddance to bad rubbish.

They tried to dictate a morality upon the country by not renting out NC-17 DVDS or banning "The Last Temptation of Christ". Also they rarely had what I want in stock ("Sorry, we only have one copy of Red Dead Redemption and it's checked out.') so I could care less.

What a shame... some of my fondest memories are going into Blockbuster to rent movies to watch on a portable DVD player on long car trips. After we got Netflix, we slowly stopped going to Blockbuster... I guess I'm one of the reasons this happened... I'm a monster...

Oh well, as someone stated above the sales are going to be awesome in the near future so I smell a massive movie shopping spree coming up.

Thank goodness I go to Family Video.

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