Inside Redbox is the #1 "Unofficial" Redbox Online Community for Redbox Codes, News and more. Inside Redbox is not affiliated with Redbox Automated Retail, LLC.

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.

22 Responses to “Blockbuster Bankruptcy Rumors Abound, Stock Plunges”

  1. Visitor [Join Now]
    John [visitor]

    Wow, you’d think that either CNN Money or the Blockbuster spokeswoman could be bothered to learn how to spell “initiative”

  2. Visitor [Join Now]
    eugene [visitor]

    Time for blockbuster to move over. They have taken enough money from the consumer.

  3. Member [Join Now]
    Car [car]

    More than a year ago you could have looked at the Redbox model and know to get out.

    Why did these people wait till the last minute to sell?

    The funny thing is the article acts like it’s netflix that’s causing BB to go bye bye.

  4. Visitor [Join Now]
    Terry [visitor]

    Blockbuster (BBI) has halted trading after hours. Traded 13.6 million shares today, average 1.3 million. Down 76% at close Tuesday.

  5. Member [Join Now]
    Car [car]

    Blockbuster fell as much as 83 cents to 13 cents in New York Stock Exchange composite trading before trading was halted at 2:25 p.m. Netflix surged $2.01, or 5.9 percent, to $36.36 in Nasdaq Stock Market trading today.

    “Blockbuster, spun off from Viacom Inc. in 2004”

    It was at about $3.50 a year ago.

    Next headline will be “Redbox rentals surge as BB stores close down” :)

    Yea, it’s going to get more difficult to snag a new release on Tuesday.

  6. Member [Join Now]

    Bye bye Blockbuster…How we’ll miss your $5 per night rentals!

    • Member [Join Now]

      The only reason I ever stepped foot in a Blockbuster was to rent WWE DVDs anyhow. I saw Redbox has had UFC PPV titles in the past, which makes me wonder why they never stocked WWE PPV titles. I wonder if Redbox will stock any of the WWE Pay Per View DVDs.

  7. Visitor [Join Now]
    Phil [visitor]

    The only time I use Blockbuster is to either rent something really old, that I can’t find anywhere else, or to buy previously-viewed DVDs that they blow out 3 for $20. If they closed down entirely, losing that would suck.

  8. Visitor [Join Now]
    Hiedi [visitor]

    I rent all my movies now from either A. Netflix or B. Redbox (for new stuff I don’t want to wait for through netflix)

    If I end up buying a moive, I buy em through either Walmart, or one of my area pawnshops.

    Blockbuster….uggg. I’ve hated them since day one. Thanks to Walmart, amazon, netflix and as of late when they finally came to my area-redbox I haven’t stepped inside a movie rental store in about 4 1/2 to 5 years. Blockbuster can keep their $5 a night rentals and shove em where the sun don’t shine. If they wanna know why they are in such trouble they need to look no further than what they charge for a one night new release rental and their customer service-or lack thereof.

  9. Visitor [Join Now]
    Libby [visitor]

    I will miss Blockbuster’s game rentals for my son…. :-(

  10. Member [Join Now]

    look into gamefly for games…

  11. Member [Join Now]
    Car [car]

    I think Blockbuster should be saved.

    It’s a old failing business model and it’s obvious that it will fail shortly if we don’t do something about this right now (just like car manufactures), if we don’t it’s just going to get worse later, like them going out of business, and that would be bad for people who rent every day, plus don’t forget about the CEO and other executives, close relatives.

    I am going to propose that everyone here must pay their “fair share” of saving Blockbuster, you have no choice, I’m your leader, supreme dictator and control everything so pay up.

    I think I’ll call it the “Blockbuster bailout program” :)

    Don’t worry, it’s only a loan and BB will pay it back, I think it’s a good risk, don’t you?

  12. Member [Join Now]
    prupp89 [prupp89]

    Well Redbox is just creative destruction… its a more efficient way of renting movies. The video game rental market will just be taken up quickly by another vending company I’m sure. I don’t think you have anything to worry about in terms of not being able to physically go to rent movies; it just won’t be at a B&M store, but a kiosk instead. If Blockbuster were smart they’d start throwing in the towel in poor markets and invest the money they have into a new market such as video game rental kiosks, and try to position them near Redbox kiosks. If Blockbuster just sticks with their current online/B&M strategy they won’t stay afloat.

  13. Visitor [Join Now]
    weewilly [visitor]

    Well, I, for one, enjoy visiting Blockbuster for rentals, as I like the atmosphere, the smell of popcorn, and the ability to peruse the titles at my leisure. I tried online renting, but much prefer renting exactly what I want when I want it rather than trying to anticipate what I (and my lady and kids) might be in the mood to watch on the weekend. Redbox pricing can’t be beat though, so I’d be a fool to rent a movie at Blockbuster that Redbox has right next door. But since Redbox titles are pretty limited, I suspect I’ll still visit BB from time to time if they stick around. I read recently that they are going to offer pricing of $2.50 per rental if you return the movies the next day, so that will be nice. But I’m not sure you can maintain a B&M operation at that pricing level. Hollywood Video tried dollar rentals and couldn’t make it. I, for one, will miss BB if it goes.

  14. Visitor [Join Now]
    jake [visitor]

    Blockbuster is going under. I work for them currently and i can tell you from the bottom of my heart I think that they should. Not that all those people that work for blockbuster should go with out jobs, but this is a company that cares for no one. Netflix has more movies than we do and it costs 5 dollars to rent a movie at blockbuster the same price it costs to rent one on demand. With the switch to all digital blockbuster is done. And they know it. We try to sell anything to anyone. The rewards program is stupid and no one should get it. They have made me lie to so many customers over and over again about the rewards program. But if i don’t lie i do not get hours. They keep telling us that it will only be 10 dollars for one more week then next week it goes back up to 20. I have said that so many times. And it never goes back up. Our new dollar a day late fee is stupid. We went from no late fees to a dollar a day just like red box. We are basically told not to help anyone. I mean really we are told not to help you if you have a problem. If you come in and your movie didn’t work and we don’t have another one and you ask for your money back it counts against us as a credit. Every time someone comes in with a problem we are already reluctant to help because if you make us do anything that requires us to give you money back for anything we will are told to try any and every way to not help you. I have told people many times there was nothing i can do for them when it was blockbusters fault the whole time. I have to tell them this so that I will get hours the next week. I have to sell rewards, movie passes, and confection all the time just so i can get hours for the next week. And they keep track off all of that. If you get the wrong movie and come back and ask to get your money back we will probably either say “NO” or ask to just give you store credit. If i have to give you your money back it looks REALLY bad on me. Its a big business so i know they are not supposed to care but they really, really don’t care. It is not a good company to work for or to be a consumer for. I have not gotten a raise in more than a year and i am in fear for no hours every week of my employment.

    • Member [Join Now]

      Sad commentary jake. I haven’t been to BB in over a year, but when I went, they were the nicest people, we joked around, they knew me by name. Unfortunately I have a voracious appetite for movies and my wife threatened to cut my movie allowance. So now I go elsewhere. I’m thrilled to get a new release for 1$ but it’s still just a machine. I guess the next generation of workers will have to learn to maintain redboxes ATM’s, Coinstars, self check-out lanes etc. At least until someone comes up with a machine to replace those workers. R.I.P. BB

  15. Member [Join Now]

    I like BB myself. I subscribe to Blockbuster Online and they do good service. Plus there is a great selection in my blockbuster, although i rent a lot of movies at my library. Of corse, I rent new movies from redbox!

  16. Visitor [Join Now]
    the kliq [visitor]

    Hopefully the tyrant CEOs will go bankrupt. That’d be the best thing to happen since sliced bread, not giving their employees raises on over a year and a half. They only thing that sucks about redbox is a credit card is REQUIRED, and they charge you per day to the minute, so if you rent it 5:01pm and return it 5:02pm the next day, you’re charged for another day

    • Visitor [Join Now]
      Mark [visitor]

      Not for a one-day rental. You always have until 9PM the next day no matter what time you rented it the previous day.

      I am taking it on faith that you are right about the exact time extra charge thing for multi-day rentals and not completely out to lunch. I’ve never personally run into that (I seldom keep the DVDs more than a day) and I’ve never heard anyone complain about it before.

    • Member [Join Now]

      If you don’t know what you’re talking about you should really just keep your mouth shut. You ALWAYS have until the next day at 9 pm to return your movie. Learn what you’re talking about before posting stuff that makes you look like and idiot!