Blockbuster 'explores bankruptcy'

Source :http://uk.news.yahoo.com/4/20090303/twl-blockbuster-explores-bankruptcy-41f21e0.html

Straight from the web page:

"The company has hired law firm Kirkland & Ellis and is also working with investment bank Rothschild, said the source.

Blockbuster has not responded to requests for comment.

The company is struggling to reinvent itself with increasing numbers of customers migrating to video downloads or mailed rentals, while also restructuring hundreds of millions of dollars in debt.

Executives had said in November that the firm would face challenges refinancing its debt.

Edward Woo, Wedbush Morgan Securities, said: "Blockbuster has been facing some liquidity issues for a while now and this is one of the options they have. It's not a great one.

"I don't think it's going to result in a liquidation like Circuit City, but if you're doing business with them, it's not a great thing," he said.

Mr Woo estimated that Blockbuster had spent $2.7 billion on product and inventory costs, which was mostly video games and DVDs, in 2007."

Uh-oh, this can't be good.

netflix ftw

that sounds like the name of an adventure movie or something. Blockbuster Explores Bankruptcy!

Yeah, no doubt...I'm on the "Cheapflix" plan, $5/month- one out at a time. I usually don't have time to watch more than 1 movie a week, so it's the same price as Blockbuster's weekly rate, but I get 4x the movies.

Where I live, Blockbuster is one of the few places to go and get games and films. Well, shit.

Sucks if Blockbuster goes bankrupt because of all the people that will be losing their jobs. Other than that it makes no difference to me.

Damn, I rent games from Blockbuster, I hope they stay above water level.

Ranulph Fiennes eat your heart out.

The video store is a dying breed.Too much overhead, late fees, lines, driving to the location. All these things are made easier and cheaper through on demand and services like netfix.