Blockbusters losses near half a billion

US retailer Blockbuster has posted some disturbing numbers for its most recent financial quarter, with Q4 net losses at the company hitting $434.9m – up on the already savage $359.8m loss suffered in the same period a year before.

Revenues fell by 18 per cent to $1.08bn. Company debts are now said to have reached around $1bn.

The news comes as rival US rental firm and digital specialist enjoyed revenues of $444m in its Q4. This is more than Blockbuster’s $400 movie rental revenues and represents the first time Netflix has outperformed Blockbuster in the sector.

Blaming a weak Christmas on the High Street, the firm has pledged to shave $200m from its costs and shut down up to 545 stores in the coming months. It also intends to sell off any remaining international assets.

Substantial doubt exists with respect to the company’s ability to continue as a going concern,” the company said in a statement. We intend to explore strategic alternatives, one or more of which could improve liquidity.”

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