Trying to borrow enough to go broke through a Chapter 11 bankruptcy reorganization
instead of going broke through a Chapter 7 bankruptcy liquidation is not encouraging
for the shareholders of this major movie distribution outlet.
Posted on 08/14/2010 10:11:11 AM PDT by Zakeet
Deteriorating quarterly results forced Blockbuster Inc. to repeat its warning Friday that it might have to liquidate if it can't arrange new debt financing.
The dire warning came as the Dallas-based movie rental chain reported a wider than expected three-month loss on a 20 percent drop in revenue. That was after persuading debt holders late Thursday to give it more time on a $42 million interest payment that was due.
Debt holders either see improvements worth waiting for in Blockbuster's attempted turnaround or remain at a standstill about what to do next, analysts said.
Meanwhile, the struggling company is running out of cash. Its cash balance was $64.3 million on July 4, down from $109.9 million in April and $188.7 million in January.
[Snip]
Separately Friday, in its quarterly filing with the Securities and Exchange Commission, Blockbuster continued to warn that "even a successful and efficient implementation of the recapitalization initiatives we are pursuing" would require a Chapter 11 bankruptcy reorganization. It also said Chapter 7 liquidation is possible if it can't secure new financing to carry it through a bankruptcy.
One of Blockbuster's former competitors, Movie Gallery, was forced to liquidate earlier this year.
(Excerpt) Read more at dallasnews.com ...
Trying to borrow enough to go broke through a Chapter 11 bankruptcy reorganization
instead of going broke through a Chapter 7 bankruptcy liquidation is not encouraging
for the shareholders of this major movie distribution outlet.
Not surprised......
It’s got to be hard to run a movie rental store when there are virtually no new movies worth watching.
Even if I had a coupon for 10 free movie rentals, I doubt that I could find more than two that I would be interested in.
The “gruesome news” was inevitable given the nature of access technology today.....just as it is inevitable that Blockbuster’s will not adapt and will inevitably cease to exist.
They should have minimized when Netflix came out.
Somehow I don’t feel sorry for the gorilla on the block that saw easy money in the 80s by squeezing out mom and pop video rental stores with advantages of scale and then proceeded to rape customers with high priced fees for two decades. Poor service, greedy and their time has passed. Good riddance.
I have no use for Hollywood or TV. They ALL support Obam and the Islamification of Americs. The 9/11 Mosque is just another example.
Here’s a business model for ya..in my local shopping center, there’s a Blockbuster store...average cost is $3 for a first run...or in the same mall..at my Publix..there’s a Blockbuster kiosk...$1..
Small fiddle! These guys ran the “Mom and Pop” Video stores into the ground when they appeared.
With all the movies I have "On Demand", in addition to the library of DVDs we've built over the years, why would I want to pay money to rent a DVD for a couple of days?
This is the company that arrived on the scene with a chairman (or whatever) who repeatedly gloated that he was going to put all those 'Mom and Pop' video stores out of business - which he largely did. What goes around comes around.
Interesting - I don’t see any sympathy for Blockbuster in this thread.
Nor do I. It seems to me that shortly after the U.S. invaded Afghanistan and Iraq, Hollywood shifted into making political movies, actors couldn’t keep their stupid mouths shut, everything that came on TV was about gays, lesbians, or various other deviant behavior, so I just quit participating.
In terms of movies though, right after they ran through all of their political crap, then they went right into remaking everything ever made, and badly. I’m not going to pay any money to see a bunch of pg-13 milk toast remakes of previously well made good movies. There are also certain actors that I will never watch, like Julia Roberts, and the star of seemingly every recently made movie, Leonardo DiCaprio.
Not gonna watch anything with Matt Damon or Ahnold in it either. As far as I can tell, they pretty much screwed their own industry, and they are taking rental stores down with them. I remember I was thinking of starting a Netflix account until I went to their website and realized that they didn’t have one single thing that I wanted to watch.
We use Blockbuster’s version of Netflix. Get movies via snail mail. I wonder what happens to that operation if they liquidate the chain.
Compared to Netflix, Blockbuster was anti-consumer.
The solution to the problem of having nothing you want to watch? Do what I did. Marry a woman who wants to see EVERYTHING that comes out(:
Blockbusters business model was inflexible to technological change and their business ethics alienated the public they desire an income from.
Harvard Business School 101 for failed business leadership.
Oh God no! With my luck I’d get one who wants to see this new Julia Roberts crapola.
I am extremely hard headed about movies I want to see and don’t want to see. If I had to, as a matter of relationship protocol, endure movies that I didn’t want to see, I have no doubt that I would leave that person.
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