With an already deferred debt payment looming on August 13, Blockbuster’s list of options grows thin. Bloomberg, citing “people with knowledge of the matter”, is reporting that it is likely that the once-mighty rental chain will receive yet another brief reprieve from its creditors so that it may prepare for a bankruptcy filing in the near future.
Blockbuster spokesperson Patricia Sullivan offered the following on the company’s “productive” talks with lenders:
“We’ve been transparent throughout this process about the potential sales or licensing of certain international operating assets . . . These discussions are ongoing.”
Wedbush Morgan analyst Michael Pachter thinks Chapter 11 is the only option left for beleaguered BB:
“The debt is killing them . . . They have to wipe the slate clean and get out from under $100 million or more of interest payments.”
Could a post-bankruptcy Blockbuster emerge as a leaner, more agile competitor in the swiftly changing home video marketplace, Insiders? Or was BB’s fate sealed long ago and it would be merely delaying its appointment with oblivion by entering Chapter 11?