AfterDawn: News

Blockbuster shows another quarterly loss

Blockbuster, the struggling video rental chain, showed another quarterly loss for the Q3 2009, with net loss increasing almost $100 million year-on-year.

The company said the increased loss was due to store closings and a 14 percent drop in same-store sales. Blockbuster plans to reverse the loss by next year using newly refinanced debt agreements and boosting videogame advertising and sales.



Overall, the net loss was $114.1 million for the quarter, along with a drop in revenue of 21 percent to $910.5 million.

The new refinancing agreements will give the chain up to $600 million to invest in more Blockbuster Express kiosks as well as digital movie offerings.

Blockbuster Chief Executive Officer Jim Keyes added: "We temporarily changed our approach... but I can assure you we're glad that phase is over. We've now returned our focus to transforming the core business."

The chain is set to close 960 stores by the end of 2010 and has closed 215 already this year.

Written by: Andre Yoskowitz @ 15 Nov 2009 21:48

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• 7 comments

• spartybob

  To the last BB customer, please turn off the lights. Thank You, Management.

  15.11.2009 22:51 #1

• jookycola

  Die, Die, Die
  Already.

  16.11.2009 10:25 #2

• LissenUp

  Yes, I truly think BB can pull itself out of its hole and debt.................close all your stores with the exception of 5-10. Become a small business in local areas and admit a business failure.
  
  Good GOD............even Family Video has kicked their ass.

  16.11.2009 11:05 #3

• KillerBug

  Originally posted by LissenUp: Yes, I truly think BB can pull itself out of its hole and debt.................close all your stores with the exception of 5-10. Become a small business in local areas and admit a business failure.
  
  Good GOD............even Family Video has kicked their ass.Up the insurance, then piss off the mob...that is the only profitable business plan I can think of for them.

  17.11.2009 00:21 #4

• DXR88

  there are some real brains at work hear people lets close all are stores that will increase are sales. then people wonder why is america in a state of recess.
  
  that puts 4800 people out of jobs in the worse time possible, about 5% of those 4800 people will get new jobs the rest will try but to no success.

  17.11.2009 12:58 #5

• duke8888

  I hate Blockbuster and their business practices can't wait for the last store shutting down, Die Blockbuster Die

  19.11.2009 08:31 #6

• Mez

  I think they need to sink all their money in SD chips! Why they think they will be more profitable than disks that only have 2 flavors and that everyone uses is beyond me.
  
  I will actually hate to see them go. I use Red Box for new releases but BB for oldies when my backup is not usable. I guess I will need to go back to NFs. I have had too many terrible experiances with them.

  19.11.2009 09:52 #7