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.?
(via Reuters and The Wall Street Journal)
sucks i still have 96 shares of this..
i doubt they will go bankrupt… i just got a ton of Stuff from them about the upcoming meeting and one of the things on the meeting will allow them to do a REVERSE SPLIT either 15 to 1 or 25 to 1
so i dont see why they would go bankrupt if they are in talks to do a reverse split
(so instead of 96 shares i will have like 3 to 7 shares)
lol i have 1825 shares……I bought them last mount @ .40 because the CEO said that they will delay the meeting by a month because they have found a way not to do a reverse split. So I assumed they found a way to reduce the 950 million loan. I guess this is his way. He will announce ch 11 bankruptcy on the 16th .
Bankruptcy is their only choice. With shares falling to 26 cents this week, and with them about to be delisted altogether from the Dow, it is impossible to do anything but file for protection. Sell your stock and go get a value meal from Mcdonalds with your money.
I listen to their conf calls and monitor their press releases, and they are doing just like any other company in trouble, they are trying to put off the inevitable, they are trying to delay delay delay and stay afloat, but mark this date – By August 30 2010 they will have filed for bankruptcy protection, at which time they will announce the closure of up to 30% of their existing stores in the US. This is the smartest move they can make and is the only move which will allow them to continue doing business for another couple of years.
LOL @ “Sell your stock and go get a value meal”
It’s unfortunate, but it appears BB will apply for bankruptcy. I have 2 BB’s in my S. Cal. city alone. There were 4. I think after bankruptcy, 1 more will close leaving 1 left. It wouldn’t surprise me at all. In my city, we have Redboxes all over the place, including the Wal-Mart. I just don’t think that many rental places are needed and you can just as easily replace an entire brick-and-mortar with 1 Redbox.
I just hope BB Online survives because if I ever restart renting online, I’ll want BB Online instead of Netflix. I was with Netflix until 6 months ago after quitting BB Online in Aug 2008. I was with BB Online for 2 years until Aug 2008. I would never re-sign with Netflix, at least for long periods, because of their idiotic “28-day delay.” However, with all the Redboxes around, I doubt I’ll ever rent as many DVD’s online as I did before. I don’t see that many movies and I’m not that enthusiastic about movies anymore anyway. I guess I’m bored with them now.
you buy stock 6 months after shares are reissued after the bankruptcy. anyone holding now is way too early.
An Ode To Blockbuster Performed By Tinybrat:
“Well it¹s time to say goodbye my friend
I¹m glad you stayed until the end
I hope that you’ve enjoyed the time we spent
Though I know that I will be back again
I don’t know just how soon my friend
Until we meet again just think of me
I’ll think of you
It was easier to say hello
Than to say goodbye
Now the bus is leaving once again
I bid farewell to you
Oh oh yeah
I remember all the fun we had
And all the tears when times were bad
But you were there when we were down and out
And I know that I will not forget
What was written and what was said
And who was there when we were on top
Of the world”
Goodbye Blockbuster my friend!
I guess those deals they signed with studios to not have to wait 28 days are doing no good.
They were in A LOT of trouble, financially, way before that.
you can not overcome a billion dollars in debt which each quarter you lose money rather than make it.
I don’t know whether it will work but the loan is to allow them to pay interest on their debt while hoping to increase their income via “new” strategies.
“I guess those deals they signed with studios to not have to wait 28 days are doing no good.”
Not enough time has passed for Netflix and Redbox customers to realize that a “28-day delay” actually exists. Most people are totally unaware that there is this delay. I still say, when Netflix customers realize this delay exists, they will dump Netflix in droves.
The only way the BB name will survive is through its Kiosk branding deal with NCR.
ironic how when i came to read this article the ad on the page was for netflix
Blockbuster stock fell 22% today to an all-time low of 22cents per share. Hard to believe you can buy 5 shares of blockbuster for about the same price as a redbox rental.
Blockbuster? Who gives a krap?
Nothing but bad luck to them…. Worked for them for 12 miserable years.
Treated employees like dirt and were heartless and cruel,Not a friendly place to work or visit. Could have left but needed the job and as a senior citizen it would have been difficult to secure another position. I and a lot of formere employees will be glad to see them get what’s coming to them!!!!!!!!!
Worked for them in six months in a small town. The owner tells everyone its a franchise instead of corporate so we will never close our doors (which it is)…but with no corporate blockbuster he will have to spend bucko dinero to revamp his computer system, relable/rebox thousands of his movies, and spend time running around trying to secure movies that are new. This cannot be done easily since Walmart and other stores will only sell 5 movies at a time.
For the record, I just rented my first redbox movie today. I’m 38 years old and it was literally the easiest purchase/rental and/or transaction I EVER did.