BlockbusterBlockbuster (BBI) is laying the groundwork for a Chapter 11 bankruptcy filing in mid-September, according to a report in The Los Angeles Times.

The publication, citing several anonymous sources, says Blockbuster CEO Jim Keyes, the company's senior debt holders and representatives from six major studios held meetings throughout last week to discuss the potential restructuring plans. The struggling brick-and-mortar video store was apparently seeking buy-in from the studios, upon whom it depends for new DVDs.

To conserve cash, Blockbuster apparently seeks to use the bankruptcy to unload roughly 500 to 800 lease contracts, which would lead to even more store closures on top of the 1,000 sites it closed last year, the Times noted.

Blockbuster, which is staggering under approximately $1 billion in debt, hopes to enter into a pre-planned bankruptcy from which it would emerge within five months, according the the report.

As far back as last March, the company was already signaling to Wall Street that it might file for a pre-planned, pre-packaged bankruptcy.

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jsheffer1019

hey teechman531 the usmc had no water carriers on peleliu jerk but took it from the facist japs to save a socialist like you read your history moron u are

August 30 2010 at 3:43 AM Report abuse rate up rate down Reply
cosmo2001

While their crappy service, overpriced movie rentals, ridiculous policies, and rude employees did speed up the demise of Blockbuster, the reality is that their bricks-and-mortar business model was rendered obsolete, and simply replaced by a newer and cheaper technology that doesn't require a building or a parking lot. This is the very nature of modern civilization, particularly in the digital age. After all, how many people today still rely upon a horse-and-buggy for their transporation? Or listen to their "transistor radio"? Or watch a black-and-white television, with tubes inside that you have to test and replace? Even look at your telephone: We used to have one in every room in the house, right?. Now, how many regular phones do you have, if at all? In fact, even if you do, how often or when was the last time many of you actually Used a regular hard-wired telephone for a personal call? . Gone the way of the horse and buggy, Blockbuster is just like a company who still (only) manufactures the old regular telephones... They did not adapt, and will therefore be phased out shortly by newer technology, and rendered obsolete. "Adapt or die". In the late 1800's a company named "Fischer" used to make horse drawn carriage bodies. When carriages were soon on the verge of being replaced by the automobile, they switched their business to making auto bodies for General Motors, ("Body By Fischer"), and thrived for 100 years after their core business became obsolete. Unfortunately, Blockbuster is still trying to sell horse-drawn carriages in a world where we now drive spaceships... Frankly, I'd be furious if I was a stockholder, particularly if I didn't speak up, or beat up on the CEO to modernize the company. And how about all those jobs? And all those empty buildings? See full article from DailyFinance: http://srph.it/d8cTqA

August 29 2010 at 9:44 PM Report abuse +1 rate up rate down Reply
BaBy

I saw this coming around 5 years ago, when cable companies offered VOD (video on-demand). I used to drop by Blockbuster 2-3 times a week at minimum, but with VOD service, why would I ever go back? I get the movies at home, same release date, and I don't have to go back later and drop off dvd's. VOD costs the same, many 1000's of movies are free, they never run out of the movies, and I find that I snack much healthier since I'm not buying overpriced, impulse-bought candies that just seem at the moment to go so well with a movie. Sorry Blockbuster, you were once awesome, now you're just outdated, old-fashioned, and unnecessary. You should have quit while you were ahead, well before you got yourself $1b in debt. That just shows ignorance.

August 29 2010 at 9:12 AM Report abuse +2 rate up rate down Reply
Mom and Dad

Blockbuster will go, the same wasy Circuit Schitty went. Nasty and arrogant to all of its customers, to bankruptcy with big plans to emerge and then they will twist and swirl down the toilet, never to be seen again. I already tore up my card. My son wanted to rent an old Indiana Jones movie so I said sure. We went to Blockbuster and they wanted $5 If they can't survive renting really old movies for $5, then nothing will help. I just hope they dispose of everyone's credit card and bank information properly. Bye bye Blockbuster. Remember went there were 5 people in line to rent a movie. Never again.

August 28 2010 at 10:13 PM Report abuse +2 rate up rate down Reply
vanstheman

Can't believe ppl are blaming Obama for this and we actually got a few defending Blockbuster. The reason they are going out of business is a matter of comsumer choice and "supply and demand". Why pay $5 per DVD when Netflix offers package deals for basically all you can rent going from $10-$20 per month with no late fees. You also have hundreds of TV show DVD sets, concerts, and obscure movies from the 70s and 80s to choose from. Try renting UK's classics "A Man About The House" (which became Three's Company here in the US) or The Benny Hill Show from a Blockbuster as a couple of examples. But Netflix has them. If you don't want a package deal and rent once in a while, there's Redbox for no more than $1.50 a movie. People have better and cheaper options to go to than Blockbuster. In the 80s and 90s ppl left the mom and pop stores for Blockbuster because they had a hundred copies of the latest new releases compared to the mom and pop places maybe lucky enough to have 5-10 copies max of a new release. Most ppl weren't shut out and got to rent what they wanted to see that day by going to Blockbuster. Times change as we're in a 24/7 instant media and entertainment age. Not many choose to go the store any more as a result.

August 28 2010 at 4:35 AM Report abuse rate up rate down Reply
JAMES

Yeah its Obama's fault blockbuster is run like **** and the company is being over taken by a newer better company and they just can't compete. You right wing wackos are funny though.

August 27 2010 at 11:20 PM Report abuse -2 rate up rate down Reply
mom2alex2008

Karma... remember when you owed them over $100 in the 80's when you lost a movie or forgot to return it?

August 27 2010 at 8:58 PM Report abuse rate up rate down Reply
txrose4ever

I hope they do not go away. I enjoy browsing the movies, and often when I go, it is spur of the moment. I am not interested in ordering movies online myself, although many folks do. Always had decent service when I went, and the place is always packed, so there's still a big demand in my area.

August 27 2010 at 6:27 PM Report abuse +1 rate up rate down Reply
Vince

I hope they go down. Terrible service and outrageous prices will do this.

August 27 2010 at 2:09 PM Report abuse +1 rate up rate down Reply
linjack39

This doesn't surprise me at all. The service at my local BB is terrible. The only time I go there is if I've been given a gift card. The employees are rude and don't even know how to ring up a simple sale.

August 27 2010 at 1:58 PM Report abuse rate up rate down Reply