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Blockbuster files Chapter 11 bankruptcy

Written by Andre Yoskowitz (Google+) @ 26 Sep 2010 23:53 User comments (17)

Blockbuster files Chapter 11 bankruptcy On Thursday, Blockbuster filed for Chapter 11 bankruptcy, meaning hundreds of stores will close over the next month as the company restructures.
Through bankruptcy, the company will eliminate about $900 million in debt, leaving the company with $125 million in debt to its senior bondholders. Other bondholders have been wiped out. Blockbuster's common stock currently trades at 5 cents, meaning for the most part, all long term shareholders have been wiped out, as well.

CEO Jim Keyes said the restructuring will allow Blockbuster to "continue to transform our business model to meet the evolving preferences of our customers."

Blockbuster has "a well-established brand name, an exceptional library of more than 125,000 titles, and our position as the only operator that provides access across multiple delivery channels -- stores, kiosks, by-mail and digital," added Keyes.

The company has about 3000 stores currently, with plans to close up to 1800 over the next year. 1000 closings were unveiled before the bankruptcy.

Throughout the bankruptcy, all stores and kiosks will remain open for current members.

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17 user comments

126.9.2010 23:57

I'm surprised it actually took this long. The store has been shrinking and shrinking for years now but technology has now out grown them. I feel sorry for those who well be losing their jobs.

This message has been edited since its posting. Latest edit was made on 26 Sep 2010 @ 23:59


227.9.2010 0:04

burn baby, burn!



327.9.2010 3:29

It's worth noting that this is Blockbuster US only. UK is unaffected.


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427.9.2010 4:28

BB UK may be OK for now...but it is only a matter of time before we see Netflix.Eu

527.9.2010 13:36

good

627.9.2010 14:01

Originally posted by Mik3h:
It's worth noting that this is Blockbuster US only. UK is unaffected.
i was just about to ask that question
This message has been edited since its posting. Latest edit was made on 27 Sep 2010 @ 14:01

728.9.2010 6:55

BB refused to change with the times and refused to keep prices low. I hope they taken over by netflix....


Copyright infringement is nothing more than civil disobedience to a bad set of laws. Lets renegotiate them.

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828.9.2010 11:39

Netflix indeed is my favorite for now, as well as Redbox when I turn Netflix off. Charging $4.99+tax for two nights is ridiculous.


"Its as if McGruff the Crime Dog snuck into our basement, enlisted an army of cellar rats to eat up all of our cheese, and then burned the house down when we finally locked him out instead of just knocking on the front door to tell us the window was open." ~Revision3 CEO Jim Louderback

929.9.2010 4:45

BB prices and service suck, but the main problem is lack of selection. If you want good selection, you get netflix. If you just want convenience, you still use netflix (instant streaming), or maybe RedBox (they are everywhere, most are open 24-7). If you want a lack of convenience, a lack of selection, service worse than what you get from a box, and high prices, then you must be BB's last customer.

1029.9.2010 6:42

BB pulled out of this town years ago.. their old store is now a co-op funeral service.. hahahahaha




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113.10.2010 7:42

Blockbuster just shut down forever. I won't miss you at all because Netflix is a billion percent better!!

123.10.2010 7:46

Originally posted by bratcher:
Blockbuster just shut down forever. I won't miss you at all because Netflix is a billion percent better!!
AS long as you are not being throttled :P

Copyright infringement is nothing more than civil disobedience to a bad set of laws. Lets renegotiate them.

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133.10.2010 7:53

Originally posted by ZippyDSM:
Originally posted by bratcher:
Blockbuster just shut down forever. I won't miss you at all because Netflix is a billion percent better!!
AS long as you are not being throttled :P
Well, I manage to stay under the 250GB cap that Comcast imposes on it's users.

143.10.2010 9:13

Originally posted by biglo30:
I'm surprised it actually took this long. The store has been shrinking and shrinking for years now but technology has now out grown them. I feel sorry for those who well be losing their jobs.
I do not sorry to say that I was a shift lead for 2 years for 1 year 8 months I was the only black working there everyone else was white my manager all was told us look at the blacks when they come in they still I had a big problem with that I seen white's asians all kinds of people still out the store.The sad part is I love the work it was the best job I had.

153.10.2010 18:26

Yeah, well when you can rent a movie for $1 at redbox or 3 at a time with netflicks or BBonline whos gonna pay 5$ to rent 1 movie anymore?

1615.10.2010 18:30

Guess what? Blockbuster stock is worth about a nickle on the pink sheets in the stock market. Hurry up & die a quick death Blockbuster. I'll never miss you...

I'm surprised that they still have 30 stores left in the Houston area. Nearest one is 2.37 miles from my house & I'll never shop there nor any other Blockbuster stores.

Long live Netflix!!

1722.5.2011 20:37

I can't wait for them to go under. Maybe then I can *finally* remove their crap app without rooting my phone.

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