Blockbuster preparing for bankruptcy

Ben Parfitt
Blockbuster preparing for bankruptcy

The long and drawn-out demise of US rental giant Blockbuster looks to be reaching a conclusion with predictions that the retailer could file for bankruptcy as soon as the end of the week.

Home Media reports that Blockbuster’s attempts to recapitalise to allow a shift in focus to multiplatform distribution (mail, kiosks, mobile and video-on-demand) have yet to bear fruit. Unless a change of fortunes occurs in the near future Blockbuster could commence bankruptcy proceedings on August 12th.

However, this may be easier said than done. Any pre-packaged form of bankruptcy would require the approval of the retailer’s many creditors. Indeed, many may prefer to continue attempts to recapitalise and try and avoid bankruptcy altogether.

The company was delisted from the New York Stock Exchange on July 1st.

These developments are just the latest in a long line for the ailing chain. As long ago as March 2009 it was said to be “close to collapse”, and later that year it closed 960 stores. It admitted in March this year that bankruptcy remained a genuine threat.

The UK arm of Blockbuster, which in March of this year was put up for sale, has always insisted that it is run independently from its US parent and will not be affected by its troubles.

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Tags: Retail , Blockbuster , bankruptcy

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