Blockbuster should liquidate instead of reorganize under new ownership because the video-rental store chain lacks the necessary cash to continue operations after a proposed sale is completed, Home Media Magazine reported, citing a division of the U.S. Justice Department.
Retailers are getting back to business after the recession and showing stronger earnings, making them attractive targets for private equity investors -- and each other.
Bankrupt video-rental company Blockbuster may put itself up for sale as early as next week, The Wall Street Journal reported Thursday. The company had previously planned to reorganize, but creditors couldn't agree on a plan to restructure its debt.
Netflix, whose DVD-by-mail service hastened the demise of several video rental chains, may soon find itself under siege from Amazon. The world's largest online retailer appears to be on the verge of launching its own unlimited movie and TV-show streaming service.
Netflix angered customers this week by removing the option to order DVDs via videostreaming consoles and mobile devices. The news that it was eliminating the "Add to DVD Queue" button in order to focus more on streaming videos has drawn thousands of comments, many critical of the company.
Blockbuster has nearly run out of money again. It wants its bondholders to put up more capital as it wrestles to exit Chapter 11. If some of the bondholders balk, Blockbuster will almost certainly be sold off in parts. But what exactly does it have left to sell?
When tech writer Alex Salkever issued his five tech predictions for 2010 last year, he boldly proclaimed that India's nascent tech sector would see its first blockbuster startup emerge. That blockbuster turns out to be MakeMyTrip.com, and it's likely to be followed by many more in 2011.
Safeway might not seem to have any connection to Blockbuster, but it turns out the supermarket operator is the landlord of several Blockbuster stores slated for closure. Safeway has filed a motion to ensure the liquidations don't disrupt neighboring businesses.