Fresh off of a contract extension and six-figure retention bonus, bankrupt Blockbuster’s CEO Jim Keys may be on his way out. The Wall Street Journal is reporting that BB has hired an executive search firm to replace Keyes and possibly other company executives. BB’s largest creditors, including billionaire Carl Icahn, must sign off on the new Blockbuster CEO by the end of the year, according to the restructuring deal made before BB entered bankruptcy.
When asked for comment, a BB company spokeswoman would only say that Blockbuster is “moving forward with what is consistent with our public disclosures and the requirements of the recapitalization plan. Jim remains fully engaged and committed to the business and the plan. This includes active participation in any evaluation of potential CEO candidates.”
Keyes himself apparently remains in the running for the CEO spot, but anonymous sources consulted by the WSJ portray his chances as slim.
What are the odds that Blockbuster’s senior bondholders will allow Keyes to keep the reins, Insiders? What kind of company will the new BB CEO, whoever he or she is, inherit in a few months? Leave your opinion in the comments.
(via The Wall Street Journal)