Earlier in the day reports started surfacing that Blockbuster was hiring an outside firm to discuss the possibility of a bankruptcy filing. Their stock fell over 75% before the markets closed, as many investors sold on fears over the filing.
CNN Money is now reporting that Blockbuster has hired Kirkland & Ellis “for assistance with our ongoing finance and capital-raising initiave”, according to Blockbuster spokeswoman Karen Raskopf.
So, it looks like they are not filing for bankruptcy, but the question remains: is Blockbuster in such a precarious situation that even a small hint at bankruptcy causes mass panic?
Blockbuster’s relevance in this marketplace keeps shrinking. Your move, Blockbuster.