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Blockbuster files for bankruptcy in US

Thursday, 23rd September 2010 21:19 GMT By Stephany Nunneley

blockbuster Blockbuster has filed for Chapter 11 bankruptcy in the US.

The game and video rental chain, which planned to shutter 810-960 stores last year, has filed for restructuring in order to keep debts under control.

Stores outside the US will not be affected, as the chains are operated as separate franchises, with Blockbuster UK still in “very good shape” with an 18 percent profit gain in 2009.

The restructuring of US Blockbusters stores will cut the chain’s debt by around $1 billion (£638m) to $100 million (£63.8m).

“After a careful and thorough analysis, we determined that the process announced today provides the optimal path for recapitalising our balance sheet and positioning Blockbuster for the future as we continue to transform our business model to meet the evolving preferences of our customer,” said Blockbuster CEO Jim Keyes.

“The recapitalised Blockbuster will move forward better able to leverage its strong strategic position, including a well-established brand name, an exceptional library of more than 125,000 titles, and our position as the only operator that provides access across multiple delivery channels – stores, kiosks, by-mail and digital.”

Currently there no plans shut down some 3000 stores in the country.

The chain has been listed on different financial sites as one of many companies that may disappear in the future.

Thanks, GI.Biz.

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12 Comments

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  1. Razor

    Block-Busted.

    #1 4 years ago
  2. OlderGamer

    Yes Netflix is just that good.

    #2 4 years ago
  3. theevilaires

    No it isn’t, Netflix is shit and soon it will be gone too. Long live pirates! Fuck Hollywood!

    #3 4 years ago
  4. DSB

    I always wanted to try Lovefilm, I just think I’m too lazy and scatterbrained to throw ‘em back in the postbox from whence they came.

    Owning a DVD will run you like less than 10 bucks, it’s not exactly a major investment.

    Fuck Blockbuster.

    #4 4 years ago
  5. OlderGamer

    It isn’t about owning or not owning really.

    Netflix can run you as little about 9bucks. And that streams a hella large movie and tv show line up straight into your living room. On top of that, you can watch somewhere between 10 – 15dvds(tv shows or movie) in a month for that same price. The dvds are delivered to your mailbox.

    We(and others I know) use it and have droped cable tv.

    The debate between Cable/sat TV and Netflix is upto what that person values. But between Blockbuster and Netflix? Are you kidding me? No contest there fellas.

    I live in NY State where the winters are cold, blustry, and snow filled. When its 10bellow zero, I ain’t leaving the house to go to a movie rental store.

    Lets say I watched ten movies in one month. Even if I found all ten of those movies at the store for just 10bucks(new releases here range from 15 to 20, 25-30 for BD), I would be paying upwards of 100bucks for those movies. Netflix still only costs me 9bucks.

    And I didn’t factor into it the masive amount of instant viewable movies you can also watch. My instant view Q has just under 500 choices on it.

    For those that know, Netflix killed BlockBuster.

    If you want to reword it, BlockBusters inability to see the writting on wall and change with new technology set the franchise back. Where as Netflix embraced the ability to stream media to TVs, DVD players, xb360, PS3, Wii, and other Netflix ready devices. Netflix also embraced new thinking by allowing flat fees w/unlimited rentals … delevired straight to your mailbox, w/free shipping both ways.

    “It is not the strongest of the spieces that is able to survive, but the one most responsive to change”

    BB wouldn’t change.

    I wonder what Gamestop type stores will do? Seems to me, they are in the same top of position that BB was in a few years back.

    #5 4 years ago
  6. hitnrun

    I remember when I was a little kid, watching Blockbuster wipe out my favorite local and small-chain video stores was my first lesson in the Retail Location Spam tactic that we all know and love.

    Now we’ve (almost, despite their denial) come full circle. DIAF, Blockbuster.

    #6 4 years ago
  7. theevilaires

    Well I haven’t watched regualar TV in years….too busy making money,raising my daughter,and playing video games.

    I have a couple of TB usb drives and every one of my PS3′s have 500GB HDD so you can imagine every I have every TV show from the 70′s 80′s 90′s and “EARLY” 2000 backed up ready to watch on any of my 1080P HDTVS with the assistance of my SUPER multi media PS3′s :D

    Like I said fuck Hollywood and their fat money hungry wives.

    #7 4 years ago
  8. Dr.Ghettoblaster

    @5….I couldn’t have said it better myself.

    #8 4 years ago
  9. Callum

    Blockbuster was the end of that dude with the white van who used to knock on my door when i was about 5 years old and let me “borrow” jungle book on VHS for 50p for 2 days. Good times.

    Then, when they had the market share, the price went slowly up.

    How long till netflix asks for $11 a month because they now have 1000 on demand movies? then $13? then $15 ?

    Full circle indeed.

    #9 4 years ago
  10. frostquake

    I am a Netflix Subscriber…I only use the Mail Service for Anime, but I use Netflix to stream a TON of content on my Xbox. Once PS3 allows us to install Netflix instead of using a Disc I will use it on there as well, I don’t ever pull out me Wii Wii so I don’t even penetrate it with the Netflix disc ever.

    So I use Netflix Streaming 99% everyday, and 1% a week with Anime disc.

    I will tell you that in my City, Netflix and Redbox Killed Movie Gallery which had several stores, they are now DEAD from Red and Good Old Blue Blockie is down to one Store, and I expect it to close…The key..You have to be RED and rent movies for $1.00!!!

    In my City, at Walgreens and other Retailers, there are lines of people renting $1.00 movies, I’ve seen a line as late as 3am. There has never been a Redbox that you didn’t have to wait at to get your movie. Netflix help kill Blockbuster, but what really chopped off its Blue Balls was Redbox, with New Releases being only a $1.00 to rent.

    Even when Movie Distributors like Fox, Uni, Paramount quit selling to Redbox, the Reps just walked into Walmart, bought copies of the movies, and then walked to the entrance way and put the new movies in the Redbox Machine.

    Even though Redbox has signed an agreement not to do that anymore, Old Blue Balls was already in its Death Rattles, and with stock being mere pennies…It was only a matter of time.

    Edit:

    Oh and I live in the Woods on a Lake now, and the closest Rental is Redbox, Netflix, or one Mom and Pop store. I went into the Mom and Pop store and Asked where the Anime Section was, and the Man behind the counter, spit his Tobaky Juice in a Folgers Coffee can and said, “We don’t allow none of that there queer or homo stuff.” HA HA HA HA HA HA HA What a F’ing MORON!!!

    #10 4 years ago
  11. NightCrawler1970

    @5, Amen bro, well said, netflix, runs on 3 console, what have blockbuster??? just a store and by mail, in oktober netflix will be intergrated in PS3 XMB, no disc require!!!

    #11 4 years ago
  12. IRISHBULL

    Netflix might have started their demise, Redbox sealed the deal.

    I did get an email from the Blockbuster kiosk company and they said this has nothing to do with them.

    #12 4 years ago