Despite recent upbeat comments by CEO Jim Keyes, once-mighty Blockbuster Video has been on the ropes for a while now, and the knockout punch may be close. According to The Wall Street Journal, BB is “in talks with bondholders to get a $150 million debtor-in-possession loan, a sign the movie rental company could be closer to seeking Chapter 11 protection.”
Citing unnamed sources, the WSJ is also reporting that Blockbuster is in talks with a few potential partners regarding a cash injection, which would allow some current bondholders to become equity investors in the company. The WSJ also reports that BB is unlikely to file for bankruptcy before its June 24 shareholder meeting, which will already be full of drama.
2010 has already seen the demise of one major B&M rental chain. Will Blockbuster live, in some form or another, to see New Year’s Day of 2011? If not, how will BB’s corpse be divided between Redbox, Netflix, VOD providers, etc.?