Rumors of Blockbuster’s demise are greatly exaggerated, according to its CEO, Jim Keyes. The company’s much-discussed recent regulatory filing, which mentions the possibility of bankruptcy for the embattled rental giant, is routine and nothing to worry about, says Keyes. In fact, the CEO says, the filing is very similar to warnings made by the company in a filing last year, when the company found itself in even more dire straits. Said Keyes:
“Blockbuster has so many options available . . . We actually have more options available when compared to last year.”
Some of the options that Keyes referred to include the “process of a business transformation” BB is currently undergoing which closes and de-emphasizes retail locations and focuses on its on-demand and by-mail channels, along with its kiosk business with partner NCR. The company is also mulling the leveraging of its Canadian locations to improve distribution deals with movie studios, as well as the sale of or partnering out of its European assets.
Is Keyes just doing spin control here, Insiders, or is BB really in a position to avoid insolvency and move forward? Weigh in with your opinion in the comments.
(via Austin Business Journal)