There’s so much bad news associated with Blockbuster these days that would be nice to post a story once in a while that paints a hopeful picture for the video chain. Today is not that day, however, as a new regulatory filing from BB has raised fresh bankruptcy concerns about the embattled company.
From the filing:
“It is possible that a successful and efficient implementation of an exchange or any of the other strategies we are pursuing will require us to make a pre-packaged, pre- arranged or other type of filing for protection under Chapter 11,”
Blockbuster CEO Jim Keyes downplayed the statement in the filing, saying that the language was mandated by the company’s legal counsel. Keyes says that his company has been in talks with one or more Hollywood studios to reduce the rates that BB pays for product, possibly by implementing a consignment arrangement. Said Keyes:
“The studios want us to survive,”
Blockbuster also revealed in the finding that it may pledge its 459 Canadian stores as collateral for the amounts it owes to studios.
Keyes is likely correct when he says that Hollywood wants Blockbuster to survive. The important question, Insiders, is this: do you?
(via Business Week)