Blockbuster Readies Bankruptcy Filing
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Blockbuster Inc. (OTC: BLOKA) (OTC: BLOKB) is closing in on completing its filing for bankruptcy, as the company looks to shift towards a online and by mail rental service and away from its retail stores that made it a household name.
The company has been struggling under the weight of more than $900 million in debt and could file for Chapter 11 bankruptcy protection as early as the next few days, according to a report from the Wall Street Journal citing people familiar with the matter.
The report stated that Blockbuster’s creditors are haggling with its advisors over a few issues, working late into the night on Tuesday to resolve the final restructuring plans for bankruptcy.
The plan would see the company keep some strategic stores open, while shifting its focus to digital distribution. The company recently outlined plans to close nearly 1,000 stores with more closures to come, which could include 500 to 800 more stores under the current plan.
Shares of Blockbuster have been delisted and now trade for pennies on the Pink Sheets.
The droves of people that once flooded Blockbuster stores to snatch up the latest movies, now have turned to services like those from Netflix Inc.(NASDAQ: NFLX) and the vending machines operated by Redbox, a unit of Coinstar Inc. (NASDAQ: CSTR).
The popularity of cable on-demand services and consuming media through devices like the iPad and iPod from Apple Inc. (NASDAQ: AAPL) have also torn consumers away from Blockbuster stores in recent years.
The company has been struggling under the weight of more than $900 million in debt and could file for Chapter 11 bankruptcy protection as early as the next few days, according to a report from the Wall Street Journal citing people familiar with the matter.
The report stated that Blockbuster’s creditors are haggling with its advisors over a few issues, working late into the night on Tuesday to resolve the final restructuring plans for bankruptcy.
The plan would see the company keep some strategic stores open, while shifting its focus to digital distribution. The company recently outlined plans to close nearly 1,000 stores with more closures to come, which could include 500 to 800 more stores under the current plan.
Shares of Blockbuster have been delisted and now trade for pennies on the Pink Sheets.
The droves of people that once flooded Blockbuster stores to snatch up the latest movies, now have turned to services like those from Netflix Inc.(NASDAQ: NFLX) and the vending machines operated by Redbox, a unit of Coinstar Inc. (NASDAQ: CSTR).
The popularity of cable on-demand services and consuming media through devices like the iPad and iPod from Apple Inc. (NASDAQ: AAPL) have also torn consumers away from Blockbuster stores in recent years.
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