AfterDawn: News

Blockbuster prepares for bankruptcy

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.

Written by: Andre Yoskowitz @ 29 Aug 2010 2:20

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• 25 comments

• elbald90

  bye bye you were to expensive anyway
  

  29.8.2010 04:23 #1

• davidike

  with freeview in the UK who needs blockbuster, there's more than enough to watch on our free 50+ channels, and if i feel like hiring a film, i goto my local store that charges £2 per night.
  

  "The public domain is a dicgrace to the forces of evil"
  
  http://www.youtube.com/watch?v=CJn_jC4FNDo

  29.8.2010 05:15 #2

• Tecbot

  ouch for viacom and anyone with those stocks....guess it will be every country not just the usa judging by whats there? They were about the same price as every store where i live used to have some smaller stores that had movies for $0.50 and a $1 a night but they dont do that anymore it was just rogers and blockbuster left guess just rogers now and there doing crappy too tons of their stores closing too.

  29.8.2010 05:27 #3

• Zealousi

  I have a long list of complaints just as every other person but just thinking about this, This company is falling due to loss of revenue from several problems like customer service, the public's hate for late fee's and so on but piracy could of contributed to the loss of over 150,000 in jobs.
  
  I am still surprised self owned and small business stores can stay open with the increasing amount of people moving to the internet for their entertainment with the whole streaming revolution and one click downloading of anything.
  
  Blockbuster should start streaming with their own media box to home, if you can't beat them then join in and take over both sides.
  

  29.8.2010 08:02 #4

• Mysttic

  I don't care either way, let em close; I just want the closing door specials.

  29.8.2010 13:00 #5

• Hyasuma

  can't wait...for the ultimate cheap bluerays
  

  29.8.2010 13:35 #6

• baxter00

  Originally posted by Hyasuma: can't wait...for the ultimate cheap bluerays I hear that. Besides, I got tired of paying 5 dollars a night for a movie and 10 dollars for a video game. They should try and develop their online video program, and try to compete better with Netflix.
  

  29.8.2010 19:16 #7

• KillerBug

  Wow...they screwed over so many people that there were no more suckers left to keep them in business...you almost have to try to do that!
  
  If they have any hope of survival in any form, it is online. They need to start filling servers with movies ASAP...ideally, they should have as many streaming movies as netflix has disk movies, and they should charge $1 per month less for the service...and they should offer Windows, Mac, Linux, "iDevice", 360, PS3 and Android support. If they did all of that, I would give them another chance.

  29.8.2010 23:16 #8

• Mysttic

  Who cares if they honestly do survive; although already said, their support is awful, I can't see them being able to get a good tech crew to get streaming support much better than their in-store. It costs a lot of $ and they invested in the wrong areas too late.
  
  People are going to go where the support is good, and the service matches; sorry Blockbuster you are 5 years too late to catch up now.

  30.8.2010 11:56 #9

• DXR88

  Quote:I have a long list of complaints just as every other person but just thinking about this, This company is falling due to loss of revenue from several problems like customer service, the public's hate for late fee's and so on but piracy could of contributed to the loss of over 150,000 in jobs.
  no if anything it would have created jobs, many people used to go to blockbuster to get there film to pirate, some still do. Redbox is cheaper but with the advent of RENTAL films you loose alot of content and extra features
  

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  30.8.2010 13:41 #10

• xaznboitx

  Some places do have Blockbuster express now which is also 1.00 a night...
  
  I hope the one in my area doesn't shut down because that's the only one that is the one isn't shut down yet and a lot of people goes to that one.
  
  If not I can just go to quicktrip and rent movies from the blockbuster express box but it's 20mins away and not worth it.
  

  30.8.2010 14:01 #11

• o0cynix0o

  Originally posted by Hyasuma: can't wait...for the ultimate cheap bluerays I second that. I already hit Hollywood video. And I guess I'll stop by for this one as well. Short lived are the brick & mortar stores!!!!

  30.8.2010 21:55 #12

• lissenup2

  This just in................
  
  Water is wet.

  31.8.2010 01:52 #13

• xboxdvl2

  i wasnt a fan of blockbuster.I just like the small videostores.if you ring blockbuster at night and say you can't return a dvd on time can i drop it off in the morning (without a late fee) no chance.where as you become a regular at a small store and they will be understanding and wave the late fees and so on occasionally.they seems to appreciate your business more.
  

  PS2 with 12 games.
  pc-windows 7,intel core quad Q8400,4 Gb ddr2,WD 500 GB hdd,ATI Radeon HD 4550 graphics,AOC 22inch LCD moniter.

  31.8.2010 02:37 #14

• Zealousi

  agreed, i used to get away with a lot at my old one but it just got to the point where i rented out the entire store so there was not much point going there. I had a great DVD collection by then thou hahaha
  

  31.8.2010 03:26 #15

• davidike

  Originally posted by Zealousi: I have a long list of complaints just as every other person but just thinking about this, This company is falling due to loss of revenue from several problems like customer service, the public's hate for late fee's and so on but piracy could of contributed to the loss of over 150,000 in jobs.
  
  I am still surprised self owned and small business stores can stay open with the increasing amount of people moving to the internet for their entertainment with the whole streaming revolution and one click downloading of anything.
  
  Blockbuster should start streaming with their own media box to home, if you can't beat them then join in and take over both sides. seriously dude, the small businesses are doing fine, blockbuster tried to put them all out of business by making exclusive deals with the media giants but thankfully its blockbuster thats gone, blockbuster's corporate arrogance is why they no longer exist and the last thing then need to do is start streaming online.
  
  my local video store has been there for 20 years now and is growing stronger year on year by only charging £2 per night for new titles & £0.50 for old flicks and a following of loyal people.
  

  "The public domain is a dicgrace to the forces of evil"
  
  http://www.youtube.com/watch?v=CJn_jC4FNDo

  31.8.2010 05:32 #16

• bratcher

  I cancelled my Blockbuster membership shortly after they sued Netflix. Don't hate Blockbuster but I'll never go back....

  31.8.2010 13:37 #17

• alexeemo

  Originally posted by Hyasuma: can't wait...for the ultimate cheap bluerays Time to gobble up the discounts!
  

  PSN ID alexeemo, Level 10, 484 Trophies and counting

  31.8.2010 14:55 #18

• jacobjpos

  I all ways though they were over rated but i am astonish that Viacom paid 8 billion dollars Viacom shod be accountable to the stock holders for not doing do diligent and wasting all that money an a dog and a worthless one at that
  

  31.8.2010 17:39 #19

• kfir1

  For F sake just die already.

  1.9.2010 04:07 #20

• KillerBug

  Originally posted by alexeemo: Originally posted by Hyasuma: can't wait...for the ultimate cheap bluerays Time to gobble up the discounts! Wait...did they change their censorship policy? The reason I stopped going to blockbuster is because all their movies seemed to be edited by Catholic Priests (the only nudity was young boys). I wouldn't want any of their blurays...they can offer them for free; I still don't want their censorware.

  1.9.2010 05:30 #21

• Gnawnivek

  Wow, so much hate for BBV... I feel bad that people losing their jobs over this. I know a lot of friendly people at the local BBV store. I joined the BBV online recently because they now offering games and movie rental. I hate to see BBV to go under, but yeah, they made a lot of bad mistakes (underestimating Netflix is one of them).

  1.9.2010 10:29 #22

• jimmurray

  I believe I just read that the blockbuster kiosks were sold to DVD PLAY and they are painting the bbuster kiosks to be DVD PLAY boxes. Guess they will try to catch up to Redbox which is popping up everywhere.
  

  jimmurray1946

  1.9.2010 21:13 #23

• blueboy09

  Like anybody with a brain didn't see this coming! My God, when the competition beats you with innovative ways to get revenue, and you are behind the pack behind all of that competition and then decide well we should do something now, guess what Blockbuster, it's too damn late now! Netflix/Redbox has the money that you could've made if you thought of it in the first place. Idiots, what the hell were they thinking?
  

  Life is about walking on thin ice, if you make too much drama, youll crack under pressure. - BLUEBOY

  4.9.2010 23:09 #24

• majicmist (unverified)

  HORRAY!!!! I hope they lose their butts!!! Its like working in a Third World Country. The American workers are soooo discriminated against. They SUCK big time. Bring on RED BOX!!!!

  7.9.2010 21:30 #25