Blockbuster Bankruptcy Nears With Up to 800 More Store Closures Planned

Blockbuster's long anticipated bankruptcy filing is apparently headed down the final stretch and could come by the end of the week, according to a Wall Street Journal report. One of the cost-cutting moves the video chain is teeing up calls for 500 to 800 additional store closures beyond the nearly 1,000 it previously planned, the article notes.

Blockbuster (BBICP) apparently is following the well worn path of other brick-and-mortar video rental chains such as Hollywood Video's Movie Gallery parent, which filed for a Chapter 11 bankruptcy not once but twice within a three-year period. These chains are feeling the squeeze between online distribution services such as Netflix (NFLX), and low-overhead vending machines such as Coinstar's Redbox.

Last year, Blockbuster said it would close approximately 920 retail stores through the end of this year, but now that figure could nearly double if the chain hits the high end of its target range. The company has been suffocating under $900 million in debt, and the waiver it received from its senior debt holders is due to expire at the end of September, according to the article. The company's senior debt holders, however, plan to to pony up $125 million to keep the lights on while Blockbuster restructures under Chapter 11. Any unused funds from that lifeline will carry over to the company's balance sheet once it emerges from bankruptcy, the article said.

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MEIRKUBA

Another failure and that just keeps our economy rolling down hill .recovery where when ?more unemployed to add to the list,and what are this student in all colleges going to do by the time they finish there masters....frame it and look at it on the wall .

September 23 2010 at 2:22 PM Report abuse +1 rate up rate down Reply
chrislovesgwen

I'm reading these posts laughing so many people feel the way I do. Blockbuster you RAPED us when you were the only game in town, now it's YOUR turn in the prison showers. Don't drop the soap.

September 23 2010 at 6:07 AM Report abuse -1 rate up rate down Reply
Nietzsche

Go NETFLIX! What a pleasure to do business with you after Block-disaster!

September 22 2010 at 10:36 PM Report abuse +1 rate up rate down Reply
Nietzsche

Blockbuster.... Give it up already. You've ripped of enough people in the last 20 years to pay off the National debt!

September 22 2010 at 10:31 PM Report abuse +1 rate up rate down Reply
wal5we

Haven't been back to one of their stores in YEARS after they pulled the "returned late" scam on me twice. I made sure I returned the rentals hours before they were due back. They lost this customer and I wonder how many tens of thousands of others and how many millions in revenue. They have no one to blame but themselves for all the lost business.

September 22 2010 at 9:47 PM Report abuse +1 rate up rate down Reply
jimcasford

Just a couple of nights ago, I rented a movie from one of those Blockbuster "boxes" at the super market and while watching it, it froze and because lodged in my Bose 3-2-1 player. I called their service number and he hung up on me!! A Bose 3-2-1 is expensive. I trashed it getting the DVD out because the ******* that hung up on me told me it had to be returned on time. In an email from the company, they told me how sorry they were that their screwed up DVD ruined my Bose, and offered me a free one dollar rental! Blockbuster can eat it. I hope they all get cancer.

September 22 2010 at 8:11 PM Report abuse rate up rate down Reply
jmbkanga2

I'm normally sympathetic toward any individual, company or corporation going through bankruptcy, but I have absolutely no sympathy for Blockbuster. This is a corporation that deserves to fail for the greedy and avaricious tactics they used against their customers. They were doing just fine and seemed to be making a lot of money and opening new stores, but that didn't seem to be enough. Without notifying their regular customers or even posting some kind of notice in their stores, they changed the rules and policy regarding returning rented videos to their stores. While customers normally had until 6:00 PM to return videos to the store, they changed the rules so they had to be returned by 1:00 PM (you know, when most people are at work). Customers only found out about this new "policy" the next time they went to rent a video and learned they had an outstanding balance of "large charges" on their account which had to be paid before they could rent another video. This happened to me just once, and that was enough. I never went back. I'm glad they're going under. I only wish they were being fined and prosecuted for their unethical, dishonest and greedy business practices. It's not as if they were doing anything unique or had created something really new and different. They were renting videos for heaven's sake, which is hardly rocket science.

September 22 2010 at 7:24 PM Report abuse +5 rate up rate down Reply
Tony

Hurry!

September 22 2010 at 7:16 PM Report abuse +1 rate up rate down Reply
mnm7615

I don't work for Blockbuster, I wouldn't knock them, and I gladly support my local store. I like variety and sometimes I want to see an older movie. The other options are fine for some people, but I like to browse and read the covers, and sometimes I even buy some of my faves in the previously viewed area. I actually hate to see businesses die off like Hollywood Video, Sharper Image, Jordan Marsh, Dillards and so many others. Even toll plazas are starting to vanish to computers and cameras. I don't understand what satisfaction people get by bashing businesses. Remember for every business that becomes automated, like those dvd kiosks or internet downloads, are fewer and fewer jobs for actual people. So don't gripe when you've lost your job to a machine, or the teenagers have no place to get work experience. Maybe it makes some of you happy to see our economy tank and unemployment skyrocket. Taxpayers just get squeezed more to fund the projects to help the ever growing unemployed population survive. So gloat while you can, it will hit you eventually in the wallet.

September 22 2010 at 6:57 PM Report abuse +6 rate up rate down Reply
acidrain97

Well when Blockbuster was near my place i basically put them out of business. Why? For $30 you could rent unlimited movies. I was watching 2 movies a day. 60 movies a month. after 2 years of doing that my house turned into a blockbuster. Thank you dvddecrypter. Now a days I PAY FOR NOTHING! For $10 a month on the newsgroups I download what I want. People need to learn about the newsgroups and save some money.

September 22 2010 at 5:53 PM Report abuse -4 rate up rate down Reply