Report: Blockbuster To File For Bankruptcy Tomorrow Morning

[Ares]

<img src="http://consumerist.com/blockbusterbankrupt.jpg"/>

About a month ago, we wrote about reports that Blockbuster Video would be filing for bankruptcy in mid-September. So it shouldn't come as a huge surprise that Bloomberg News is reporting that the video chain will be making the filing official on Thursday morning.

According to Bloomberg:

“
Blockbuster Inc. is set to file for bankruptcy tomorrow in New York before the stock market opens, using a $125 million loan to reorganize so it can compete with rivals such as Netflix Inc. in renting movies online, according to a person with knowledge of the planned petition.

Billionaire investor Carl Icahn, who bought about one-third of Blockbuster's bonds, will join with a group of creditors in swapping their debt for all of the video-rental company's stock, according to the person and two others who declined to be identified because the discussions are private...

If creditors get all of Blockbuster's stock, current shareholders will be wiped out.
”

The report says that Blockbuster, which quietly swapped CFOs a couple weekends ago will continue to focus on the handful of bricks and mortar stores that still make money, while using the rest of the loan to try to bolster its online streaming and DVDs by mail products.

Regardless, if you have an unused Blockbuster gift card sitting around, use it now. When a company enters into bankruptcy, gift card holders often get left out in the cold, so it's best to use them while you still can.

http://consumerist.com/2010/09/report-blockbuster-to-file-bankruptcy-tomorrow-morning.html

[MNeagle]

We ditched Blockbuster as soon as Netflix arrived on the scene.

[Apparition]

Video-rental places will likely be obsolete within the next few decades as people decide to rent DVDs from online sites as a result of advanced technology.

[osoab]

About damn time. This thing has been languishing for some time.

So, how long before the online version goes belly up? 1-2 years is my guess.

I don't rent vids but the press seems to love the video rental biz. Netflix, Redbox, and the cable companies in my opinion have the corner in the video business. I don't see them taking market share away. The bankruptcy will probably encourage what customers they have left to jump ship.

It's time for Blockbuster to go away.

I hope Icahn loses his ass.

[Silver Rocket Bitches!]

I went to Blockbluster a few months back to rent a few DVDs for my daughter and was appalled when I went to the checkout and they informed me that ALL movies had been bumped up to $4. Like I'm going to spend $12 to rent 3 kids movies that weren't even new!

Talk about gouging your customers on the way out.

[skid]

Why rent when you can buy at Walmart for the same price? Plus you don't have to return them....

[willie pete]

yea BB will go the way of the doe-doe bird, they always seemed difficult to work with ....adios cucaracha

[Shami-Amourae]

I've been waiting for this day for a long time ever since I saw Blockbuster wipe out the local family ran video store I used to go to when I was little, with the free super buttery popcorn. Good riddance.


Also, I don't think online rental DVDs will last much longer either. With how fast the Internet is, it would be even easier to stream videos, or do like what Hulu does (free with commercials.)

[jimswift]

After recently investigating a new LED TV I've found that the new hotness is apps and widgets like (Twitter, netflix, rhapsody...) installed on the TV's themselves. Straight stream to the TV. This LG I saw even has a qwerty slid-out keyboard like a cellphone on the remote. So you can tweet about sitting on the couch i suppose?

I did see that Blockbuster had an app on one of the TVs I saw, so I imagine this part of their future plans.

[Twisted Titan]

I've been waiting for this day for a long time ever since I saw Blockbuster wipe out the local family ran video store I used to go to when I was little, with the free super buttery popcorn. Good riddance.


Also, I don't think online rental DVDs will last much longer either. With how fast the Internet is, it would be even easier to stream videos, or do like what Hulu does (free with commercials.)


I remeber those day as well

I was just in awe that a small company like Redflix and the lot came out of the ethos and litterally slayed a Billion dollar company.

Dam that is just amazing to see.

T

[7th trump]

We ditched Blockbuster as soon as Netflix arrived on the scene.

We recently went with netflix and I have to say for 9 bucks a month all you can download is quite a deal and no freaken commercials, parental control.........better than satelite or cable.
Netflix will dominate and destroy the satelite and cable industry when they get to the point when you can simply download anything you want to watch.
The only way I see satelite and cable not going under do to netflix would be to let the customer pick and choose what channels they want instead of paying for bullshyt channels/packages you never watch.
I dont watch msm anyway so satelite and cable are obsolete in my opinion.
When you see netflix have an NFL section for the sheeple look out cable and satelite.......................bye bye with your 100.00 a month fees!
I'm in the IT field and when you see netflix and online viewing sites popping up...............its a matter of time before the relic satelite dishes and cable boxes are replaced with a simple little chip integrated into the receiver circuit to view online material.