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.

Though it failed to make debt payments that were due to its creditors on July 1, Blockbuster has dodged the reaper’s scythe once again by reaching an agreement with said creditors that will give it a reprieve until August 13. In other, not-so-good-for-Blockbuster news, the New York Stock Exchange will be delisting the company’s stock, as prices for its shares have stayed well below the threshold for more than 30 trading days.
buy lasix online no prescription

Wedbush Morgan analyst Michael Pachter is of the opinion that BB’s stay of execution will be a brief one.
buy amitriptyline online no prescription

Said Pachter:

“Six weeks is not a long time in a tough economy, where nobody has much credit . . . There’s nothing on the horizon that makes it look like Blockbuster is going to be more profitable.”

BB CEO Jim Keyes, who had his tenure (some would say inexplicably) extended indefinitely by Blockbuster’s board of directors, was understandably much more upbeat in his prognosis for the company:

“The agreement provides us with additional time and flexibility as we continue to take steps to implement a more appropriate capital structure . . . While we are making progress in our recapitalization efforts and are in the process of negotiating term sheets with these parties, these are complex multi-party negotiations and take time.”

How many lives does BB have left in it, Insiders? Is the end nigh for the once-mighty rental chain? Place your bets now in the comments section.

(via Reuters)

18 Responses to “Blockbuster Dodges Bankruptcy but is Delisted from NYSE”

  1. Visitor [Join Now]
    will [visitor]

    Predictions: There will be a pre-packaged bankruptcy in August in which Blockbuster’s lenders end up owning the company. There will be a drastic reduction in locations as Blockbuster rejects unfavorable leases. Blockbuster will slash price points for rentals, probably to the $2/night range.

    • Visitor [Join Now]
      deep [visitor]

      any sense how many stores they close? i recall hearing that 30% of their stores generate 80% of the profit. think 50% of the store count gets slashed over night?

  2. Member [Join Now]

    Sounds like BB has nine lives. Looks like they may have just used up their seventh or eighth though…

  3. Visitor [Join Now]
    hahaha [visitor]

    under a buck is an understatement. its averaging 16 cents a share lol. for 20 bucks i can own controlling

  4. Visitor [Join Now]
    tinybrat [visitor]

    Uh, duh. Why is it that everyone can see bankruptcy in bb’s future, except for their creditors? I love the whole idea of ‘wait and see’. They think that with Movie Gallery closing, its going to have a huge impact on BB and all of a sudden everything is going to turn around. The interesting thing is, they are not expected to clear $100 Million in sales this year (not earnings, but sales), so after taxes, fees, lease payments, etc, their projected earnings are about $45 million. Now, they owe $42 million on Aug 13, and they are in debt a total of $930 million. Kind of hard to stay open with those types of numbers. Bankruptcy will be done before the Aug 13 due date. Stores are already closing in anticipation of this. 700 stores are scheduled to be closed this year already. Once a bankruptcy plan is in place, I’m guessing that number will climb to 1,500.

    By next summer, you won’t even remember Blockbuster.

  5. Member [Join Now]

    hey bb is good … we want them to suceed! just charge people 2$ a disk and keep all blu-rays in stock and lots of new releases.
    stock goes to 0 … debt restructured … bb express gets the best new releases …
    less stores … and bb online competes with netflix.

    thats what i want!


    • Visitor [Join Now]
      tinybrat [visitor]

      Tony, bb can’t do $2 a disk when 40% of their rental fee goes to the studios. Look at their lease cost for each building, their cost of purchasing the inventory, the cost of their labor, the cost of their advertising, etc etc. At $5 per rental they still don’t make enough money to stay open. They are nearly 1 Billion in debt, at $2 per disc, they would PROFIT about a nickel. Thats 20 billion rentals they’d have to do before becoming a profitable company. They closed about 600 locations thus far and still can’t get out of the red. Now they’ve lost their capital from their stock, so they are sunk. Bankruptcy will be announced in my opinion, by August 12.

  6. Member [Join Now]
    ChadCronin [chadcronin]

    I think options and competition really did them in. I remember being a Kid and I thought going to Blockbustomer was an “event” but as soon as lower cost options came around, there was less incentive to go there. I really like the workers there, but the closest one is several miles away and I don’t have the gas money to go there. Just like most companies, they were leaders in the 80’s and 90’s and they faded out over the last decade. I think the hole has been dug so deep that the only thing left they can do is jump in.

  7. Visitor [Join Now]
    will [visitor]

    The studios would take a substantial haircut (i.e. settle for MUCH less than 40% revenue sharing) in a BB restructuring. They’ll swallow hard and take the deal, because even a BB with a much smaller B&M footprint is still a major player in the rental market, plus it maintains some leverage vis-a-vis Netflix and Redbox.

  8. Member [Join Now]

    has anyone else noticed the word “express” on the blockbuster kiosk are attached with adhesive letters. Maybe the plan is to close all the stores and buy out NCR if the KIOSK business catches on and they just can peel off express on the machines.

    • Visitor [Join Now]
      Joe Schmuck [visitor]

      They (Blockbuster) don’t have the money to buy anything. Do you honestly think that they would have “partnered” with NCR or anyone els, if they had a choice?

  9. Visitor [Join Now]
    Dawson Lande [visitor]

    Who cares anymore … Unless you are working there. Closing stores only put more people on the street. Times are changing and the public doesn’t care where they get their movie fix….For oldies try your public library system.Between netflix and redbox nobody will miss BB.. Yesterdays news.
    What goes around comes back and bites you…..

  10. Member [Join Now]
    Bikemiles [bikemiles]

    Here is a picture of the Blockbuster blimp.

  11. Visitor [Join Now]
    Marjorie Zurich [visitor]

    A well presented summation of the facts. I just wish more people would be so thorough and thoughtful. Thank you.