“Shares of Blockbuster Inc. plunged 77% Tuesday after a published report said the video rental company is considering a possible bankruptcy filing,” David B. Wilkerson reports for MarketWatch.
“Dallas-based Blockbuster has hired Kirkland & Ellis LLP to help it look into various restructuring options, which may include a “pre-packaged” or “pre-arranged” bankruptcy, Bloomberg reported, citing an unnamed source close to the situation. In such a bankruptcy, most of the restructuring would be accomplished outside of court, the news service said,” Wilkerson reports.
“Blockbuster faced serious challenges even before the worldwide economic collapse, which has made consumers more cost-conscious. Online DVD rental pioneer Netflix Inc. has cut severely into the company’s share of the market over the past several years with its DVD-by-mail service,” Wilkerson reports. “Blockbuster is also pressured by Apple Inc. which began last year to offer a movie-download rental service via its iTunes online store.”
Full article here.
MacDailyNews Take: The only Blockbuster we know is at The 99. As long as that one isn’t going anywhere, we’re happy.
