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If you have any unused Blockbuster gift cards lying around, you might want to use them fairly soon. Adding its name to a list also populated by Disney, Universal, Fox and Summit Entertainment, Sony Pictures is seeking a court order that will require Blockbuster to sequester money earned from the studio’s titles.

Sony claims that BB will owe it more than $5.5 million during the next few months, which the studio fears will not be paid out. According to the studio:

“Blockbuster’s latest actions indicate that there is at least a significant risk, if not a complete certainty, that Blockbuster will not turn over the revenue,”

With even Blockbuster’s ability to auction itself being called into question, is there any chance that these studios are going to see a dime? How much of its creditors’ money could BB take into the abyss with it?

(via Bloomberg)


8 Responses to “Sony Joins Other Studios Demanding that Blockbuster Pay Up”

  1. Member [Join Now]

    I’m not an expert but in cases like this don’t the unsecured debt holders usually just lose out? At this point it’s not a question of when BB will close it’s just a matter of when and how much money can they squeeze out of it. BB as an entity doesn’t really have anything to lose since they are about as bad off as they can get.

    Maybe that’s why they were pressuring the government into overseeing the liquidation. Is there any real recourse? You can demand all you want but if the money isn’t there what can you do about it?

    • Visitor [Join Now]
      Vernon Dent [visitor]


      Unsecured debt holders ‘have to wait in line’ and depending on what’s left of BB may or may not get what’s owed.

      Unfortunately this happens all the time with receivables. BB’s accounts are probably all past due and are on no-ship status with many sources. If you mozy on over to BB’s website, many recent releases are listed as ‘on order’ SIC.

      I hope that sometime in the near future BB will be out of its misery and Insiders will quickly forget what should soon be ancient history.

  2. Visitor [Join Now]
    Dividedthought [visitor]

    Im just sad to see another business go out like this. Competition with “On Demand” and “Netflix” is hard enough. I love redbox the cheapness factor is awesome but the selection is abit crap. If only BB could have cheaper rates. The age of computers and laziness will continue with or without BB.

    • Member [Join Now]

      I agree in sentiment on this. It’s sad to see any company fail and to see hardworking people put out of work. BB failed, in my opinion, to it’s own failure to adapt. Netflix embraced low prices and the digital revolution.

      Sorry, back to the point, yes it is sad. Competition is good and jobs are good.

  3. Member [Join Now]
    Shemp Howard [shemp-howard]

    It’s painful to post about Blockbuster.

    It’s like watching a terminal cancer patient just scratch and claw trying to stay alive, but everyone knows the inevitable.

    The biggest problem is: what are Shane and Michael going to post about if Blockbuster isn’t around anymore? ;)

  4. Member [Join Now]

    ALL new WWE DVD releases are in “On Order” status. Most of them end up staying this way for a few weeks when they end up becoming “Unavailable”. This is via the BB By Mail service. Looks like this is happening in all other categories as well, seeing what Vernon Dent posted above.

  5. Member [Join Now]
    ChadCronin [chadcronin]

    I hope all the workers are lining up new jobs with fair employers. Blockbuster has had so many chances to try and correct their situation and they keep failing. I can’t see many more left with huge problems like this. They have closed down most stores in my area already.