AfterDawn: Tech news

Blockbuster bankruptcy coming within days

Written by Andre Yoskowitz (Google+) @ 22 Sep 2010 12:34 User comments (22)

Blockbuster bankruptcy coming within days Multiple sources are reporting today that Blockbuster's long-expected Chapter 11 bankruptcy should be filed within the week.
Blockbuster has over $900 million in debt and will use the bankruptcy to restructure most of that debt whilst also closing under-performing stores.

Some sources say the filing could come as early as later today.

"We continue to explore all of our options and are making good progress in our recapitalization process,"
said Blockbuster this morning. "Our discussions with the studios and bondholders continue to be productive, and we have every reason to believe we will come out of the recapitalization process financially stronger and more competitively positioned for the future."

Under the plan, senior bondholders would have $630 million of their debt converted into equity of the new company. All lower bondholders and all shareholders would be wiped out.

Additionally, senior bondholders will give the company a $125 million loan to operate while under bankruptcy protection.

It was recently discovered that "corporate raider" Carl Icahn had purchased about 30 percent of the company's senior debt.

Previous Next  

22 user comments

122.9.2010 13:16
davidike
Inactive

good riddance, rid the world of another greedy corporate scum company, that struck deals with sony, disney, warner, fox to get exclusive titles and muscle out the small independent shops.

and btw blockbuster & MPAA scum, our local video shop is still going strong!

222.9.2010 14:41

Hey DVDBack I don't think $125 is enough to operate any company bro no matter how bankrupt they are ;)


XXYYQQOO!!! Yeah WELCOME TO JAMROCK

322.9.2010 15:34

Originally posted by xyqo:
Hey DVDBack I don't think $125 is enough to operate any company bro no matter how bankrupt they are ;)
Damnit. Edited, thanks.

422.9.2010 15:38

lol no prob


XXYYQQOO!!! Yeah WELCOME TO JAMROCK

522.9.2010 21:07

Despite charging a small fortune to rent a movie for one night over the years, they are nearly a billion in debt, how? What the hell did they do will all that cash!?

I'm not a fan of Blockbusters at all, guess it leaves the internet rentals - with bigger libraries - clear to monopolise. Only downside is that this relies on Royal Mail and it takes them 3 days to deliver my 1st class DVDs to a popular town - only 2 miles from the sorting office too.


||Intel 2600K @4.7GHz|Asus P8P67-D B3-Rev|5970 2GB B.E.+ GT440(PhysX)|16GB DDR3 1866MHZ|X-Fi Fatality|Win7 x64|120GB SataII SSD|2TB WD C.B|LG GGW-H20L Super Multi Blu-Ray/HD-DVD||

622.9.2010 22:41

Originally posted by champman:
Despite charging a small fortune to rent a movie for one night over the years, they are nearly a billion in debt, how? What the hell did they do will all that cash!?

I'm not a fan of Blockbusters at all, guess it leaves the internet rentals - with bigger libraries - clear to monopolise. Only downside is that this relies on Royal Mail and it takes them 3 days to deliver my 1st class DVDs to a popular town - only 2 miles from the sorting office too.
That is just the thing...they screwed over just about everyone in the country, to the point that they can't get customers by any means (not that they ever try).

723.9.2010 0:04

Originally posted by KillerBug:
Originally posted by champman:
Despite charging a small fortune to rent a movie for one night over the years, they are nearly a billion in debt, how? What the hell did they do will all that cash!?

I'm not a fan of Blockbusters at all, guess it leaves the internet rentals - with bigger libraries - clear to monopolise. Only downside is that this relies on Royal Mail and it takes them 3 days to deliver my 1st class DVDs to a popular town - only 2 miles from the sorting office too.
That is just the thing...they screwed over just about everyone in the country, to the point that they can't get customers by any means (not that they ever try).
Can't agree more. This is nice to see Blockbuster going Bust! At one time I started getting nagging calls saying my outstanding balance of $285 for late fees was going to be sold to collections. Going to the store and talking with the manager, i agreed possibly a one day late fee at most, or even the max in my mind the price of the DVD... I felt the manager just giving me lip service and a rather poor attitude (another customer lying to get out of a late fee...) To which they double checked the shelves and found it... No apology, no comp for my troubles, just a rude "Well you sure got lucky..." Lucky I didn't get screwed by there mistake?

Beer at my house to celebrate the end of Block-Buzzard, an exceptionally bad company.

823.9.2010 2:43

see ya , and another over priced company that got away with overcharging for years goes bust ....shame :)

923.9.2010 2:51

Originally posted by SomeBozo:
Can't agree more. This is nice to see Blockbuster going Bust! At one time I started getting nagging calls saying my outstanding balance of $285 for late fees was going to be sold to collections. Going to the store and talking with the manager, i agreed possibly a one day late fee at most, or even the max in my mind the price of the DVD... I felt the manager just giving me lip service and a rather poor attitude (another customer lying to get out of a late fee...) To which they double checked the shelves and found it... No apology, no comp for my troubles, just a rude "Well you sure got lucky..." Lucky I didn't get screwed by there mistake?


I cant top you on that. Most people wont be familiar with Schnucks Grocery Store which used to have a movie rental department. I, as a child rented the famous A Christmas Story on VHS. They sent a private investigator to my house, badgered the hell out of my parents in a very rude manner and when my father insisted the store check, they found it on the shelf under the cash register three years after it was over due. My father, who loves his guns, was ready to shoot the PI lol.

As for Blockbuster, I forget the specifics but they tried to pull a similar scheme on us. If memory serves me right, when my mother passed her Blockbuster account had late fees. Nothing big, just $5 or $10 type late fee. My father tried to cancel her account and they made him jump through hurdles as if he was making it up, and this was after years of almost exclusively renting from blockbuster which was worth hundreds of dollars in total I am sure, but forbid they loose out on that $5-$10. Again if memory serves me right my father had to actually pay the late fees once he got them to close the account.
This message has been edited since its posting. Latest edit was made on 23 Sep 2010 @ 2:51

OS: Kubuntu 12.10/Windows 8 -- CPU: Intel Core i7 2600K -- Motherboard: MSI P67A-G45 -- Memory: 2x4GB Corsair Dominator -- Graphics Card: Sapphire 4890 Vapor-X -- Monitor: Dell 2208WFP -- Mouse: Mionix NAOS 5000 -- PSU: Corsair 520HX -- Case: Thermaltake Mozart TX -- Cooling: Thermalright TRUE Black Ultra-120 eXtreme CPU Heatsink Rev C -- Hard Drives: 1x180 GB Intel 330 SSD/1xWD 1 TB Caviar Black/1xWD 2 TB Caviar Green/2xWD 3 TB Caviar Green

1023.9.2010 4:04

Originally posted by Xplorer4:

My father tried to cancel our account and they made him jump through hurdles as if he was making it up...
One reason i use to like getting my canceled check back from the bank, not sure anyplace will do this anymore. On the back where people sign to endorse the check you can put terms the person cashing the check is bound by if they cash it. Much like us accepting a software EULA by installing a company's software.

I got on a monthly music club once and just like your father not being able to cancel... Fortunately I was taking an accounting class in college where we just covered the bit about check carrying terms like this. My next bill I simply paid with a check saying "Acceptance of cancellation for service to <me>." In my case it worked perfect. Only downside i don't see any banks that will return your canceled checks anymore. If there is one i'd go bank there in an instance for this very reason. Next best thing might be to photo copy the check before sending it in :) Provided you don't try for something illegal or void another contract this should work fine. In my case with the music club, i had fulfilled the get 10 CD for $0.01, and agree to by 5 more if i remember correctly. At the time I canceled i bought about 20 CDs where about 15 of them i didn't want, but was too lazy to mail them back in the required time. Oh well, think we all have been there, take care.
This message has been edited since its posting. Latest edit was made on 23 Sep 2010 @ 4:04

1123.9.2010 6:09

Originally posted by SomeBozo:
Originally posted by Xplorer4:

My father tried to cancel our account and they made him jump through hurdles as if he was making it up...
One reason i use to like getting my canceled check back from the bank, not sure anyplace will do this anymore. On the back where people sign to endorse the check you can put terms the person cashing the check is bound by if they cash it. Much like us accepting a software EULA by installing a company's software.

I got on a monthly music club once and just like your father not being able to cancel... Fortunately I was taking an accounting class in college where we just covered the bit about check carrying terms like this. My next bill I simply paid with a check saying "Acceptance of cancellation for service to <me>." In my case it worked perfect. Only downside i don't see any banks that will return your canceled checks anymore. If there is one i'd go bank there in an instance for this very reason. Next best thing might be to photo copy the check before sending it in :) Provided you don't try for something illegal or void another contract this should work fine. In my case with the music club, i had fulfilled the get 10 CD for $0.01, and agree to by 5 more if i remember correctly. At the time I canceled i bought about 20 CDs where about 15 of them i didn't want, but was too lazy to mail them back in the required time. Oh well, think we all have been there, take care.
They don't actually return the check, but Wachovia puts images of all my checks online for me...helped me out a lot after the bank holding my auto loan claimed I did not pay for two months, and that I owed them about $1000 including late fees. All fees were dropped, and the manager of the branch actually called me to apologize.

1223.9.2010 7:17

Originally posted by SomeBozo:
Originally posted by Xplorer4:

My father tried to cancel our account and they made him jump through hurdles as if he was making it up...
One reason i use to like getting my canceled check back from the bank, not sure anyplace will do this anymore. On the back where people sign to endorse the check you can put terms the person cashing the check is bound by if they cash it. Much like us accepting a software EULA by installing a company's software.

I got on a monthly music club once and just like your father not being able to cancel... Fortunately I was taking an accounting class in college where we just covered the bit about check carrying terms like this. My next bill I simply paid with a check saying "Acceptance of cancellation for service to <me>." In my case it worked perfect. Only downside i don't see any banks that will return your canceled checks anymore. If there is one i'd go bank there in an instance for this very reason. Next best thing might be to photo copy the check before sending it in :) Provided you don't try for something illegal or void another contract this should work fine. In my case with the music club, i had fulfilled the get 10 CD for $0.01, and agree to by 5 more if i remember correctly. At the time I canceled i bought about 20 CDs where about 15 of them i didn't want, but was too lazy to mail them back in the required time. Oh well, think we all have been there, take care.

I think the point went completely over your head. Plus it wasnt OUR account as you edited the text you quoted, it was her account, and well it was kind of hard for her to use the account anymore so there was no point in all the BS he had to go through.

OS: Kubuntu 12.10/Windows 8 -- CPU: Intel Core i7 2600K -- Motherboard: MSI P67A-G45 -- Memory: 2x4GB Corsair Dominator -- Graphics Card: Sapphire 4890 Vapor-X -- Monitor: Dell 2208WFP -- Mouse: Mionix NAOS 5000 -- PSU: Corsair 520HX -- Case: Thermaltake Mozart TX -- Cooling: Thermalright TRUE Black Ultra-120 eXtreme CPU Heatsink Rev C -- Hard Drives: 1x180 GB Intel 330 SSD/1xWD 1 TB Caviar Black/1xWD 2 TB Caviar Green/2xWD 3 TB Caviar Green

1323.9.2010 11:06

Blockbuster, just go permanantly out of business & good riddance to you!!

1423.9.2010 13:31

Originally posted by SomeBozo:
Originally posted by KillerBug:
Originally posted by champman:
Despite charging a small fortune to rent a movie for one night over the years, they are nearly a billion in debt, how? What the hell did they do will all that cash!?

I'm not a fan of Blockbusters at all, guess it leaves the internet rentals - with bigger libraries - clear to monopolise. Only downside is that this relies on Royal Mail and it takes them 3 days to deliver my 1st class DVDs to a popular town - only 2 miles from the sorting office too.
That is just the thing...they screwed over just about everyone in the country, to the point that they can't get customers by any means (not that they ever try).
Can't agree more. This is nice to see Blockbuster going Bust! At one time I started getting nagging calls saying my outstanding balance of $285 for late fees was going to be sold to collections. Going to the store and talking with the manager, i agreed possibly a one day late fee at most, or even the max in my mind the price of the DVD... I felt the manager just giving me lip service and a rather poor attitude (another customer lying to get out of a late fee...) To which they double checked the shelves and found it... No apology, no comp for my troubles, just a rude "Well you sure got lucky..." Lucky I didn't get screwed by there mistake?

Beer at my house to celebrate the end of Block-Buzzard, an exceptionally bad company.



My sentiments exactly. I have been screwed about as often with Netflicks. They are top heavy with utter morons. They actually killed their customer base by actively soliciting brick & mortar customers to try internet sales. They would even walk you through the sign up. Then it didn't take long for them to migrate to NFs. Who in their right mind trades $5 a movie for $2/movie? Still, they were a source of quick and easy movies and be happer if they could get their act together. That will not happen because most of their problems are at the top.

1523.9.2010 17:18

I just feel bad for all the people who have and are going to lose their jobs.(And by all the people, I don't mean the greedy corporate schmucks who helped facilitate this outcome in the first place.)

1624.9.2010 17:42

I expect , although not affected by this case according to media reports , that Blockbuster UK will follow pretty soon.
They are now charging 4.50 ( $ 7 ) for a blu-ray rental for one night. Can't see too many idiots paying those prices for long.

This message has been edited since its posting. Latest edit was made on 24 Sep 2010 @ 17:43

1725.9.2010 20:33

Originally posted by domie:
I expect , although not affected by this case according to media reports , that Blockbuster UK will follow pretty soon.
They are now charging 4.50 ( $ 7 ) for a blu-ray rental for one night. Can't see too many idiots paying those prices for long.
I used to used Blockbuster about 7 years ago when the price of buying dvds was too expensive (15-20/$23-$31) and the rental was reasonable, around 2.50/$4.

[At the price Domie quoted] Now with the price of newly released dvds being just 10/$16 and bl-ray 15/$23 - at the very most - you can clearly see why it isn't a good deal anymore.

This is why I rent from an online only-store which means either a dvd or blu-ray rental costs me just 1.80/$3 each with unlimited time to view and free delivery. Guess a bricks n mortar store will never compete with that.

||Intel 2600K @4.7GHz|Asus P8P67-D B3-Rev|5970 2GB B.E.+ GT440(PhysX)|16GB DDR3 1866MHZ|X-Fi Fatality|Win7 x64|120GB SataII SSD|2TB WD C.B|LG GGW-H20L Super Multi Blu-Ray/HD-DVD||

1826.9.2010 5:36

i dont know if i can top the storys on here but i remember a small video store around the corner from us(movieland) which was later taken over by blockbuster.We rented a movie from movieland about 2days before christmas and it was due back christmas day.We didnt return it christmas day as it was a public holiday returned it the next day and for some stupid reason they wanted a $15 late fee for something that was 1 day late and we;d been a customer since they originally opened and never returned a movie or videogame late.The store later turned into blockbusters then a different video store.Now the store is an asian grocery store.
I'm not a big fan of videostores but occasionally i will go to atlantic video which is around the corner from me at $1.95 for the latest dvd overnight rental its ok.
Not sure what blockbuster in australia charges per rental or per overnight fees as ive never used them.Been there once and i know it was more expensive than atlantic.if i recall it was very expensive.


custom built gaming pc from early 2010,ps2 with 15 games all original,ps3 500gbs with 5 games all original,yamaha amp and 5.1channel surround sound speakers,46inch sony lcd smart tv.

1926.9.2010 16:24

I go into every Blockbuster store and ask " when is your store closing?" boy do they get angry and defensive! lol

2026.9.2010 16:40
davidike
Inactive

Originally posted by Hrdrk20:
I go into every Blockbuster store and ask " when is your store closing?" boy do they get angry and defensive! lol
lmao, its sad for the employees as they dont make company policy but anybody working for anti-consumer companies deserves what they get, as long as you give them chance to be educated, if they fail to leave then, well....

seems its a war against us by the corporations i feel Superior Orders is valid for employees in accordance with global law ;)

Originally posted by Superior Orders:
A plea that certain conduct does not constitute a crime because it was committed in obedience to the orders of a superior (usually a superior officer in the armed forces). It could arise, for example, on the unjustified shooting of a rioter when the military are restoring order. UK law does not recognize the plea as a defence in itself. If an order is unlawful, a soldier's duty is to disobey it.

This message has been edited since its posting. Latest edit was made on 26 Sep 2010 @ 16:41

2126.9.2010 22:55
A Happy Ex-Employee
Unverified new user

It is my opinion that the Gallup Organization helped to create this bankruptcy. Stay tuned Folks, to the next bankruptcies because of Gallup and their false or manipulated data.

2227.9.2010 0:23

Originally posted by A Happy Ex-Employee:
It is my opinion that the Gallup Organization helped to create this bankruptcy. Stay tuned Folks, to the next bankruptcies because of Gallup and their false or manipulated data.
I'm confused Gallop has nothing to do with people's decisions to rent or use Blockbuster's services. Gallop is only a polling organization, and being that Blockbuster itself filed for Chapter [11|13]??? Gallop would have no control on Blockbuster's operations?

Sorry, i don't follow your logic or what you are saying, it makes no sense to me.

Comments have been disabled for this article.

News archive