David Kirkpatrick

April 9, 2009

Blockbuster bankruptcy?

Filed under: Business — Tags: , , , , — David Kirkpatrick @ 1:29 pm

Looks like the brick-and-mortars are going regardless.

From the link:

Once Goliath to Netlflix’s David, Blockbuster appears on the defensive in an effort to stay relevant to movie fans and viable as a business. In a filing with the U.S. Securities and Exchange Committee Monday, Blockbuster stated it may have to permanently close its retail stores. The company recently took out a US$250 million loan—on top of its $780.9 million debt—and does not know if it can meet the conditions of the loan.

Blockbuster said it has “substantial doubt” about continuing as a “going concern.” A going concern is business jargon for the ability to continue as a functioning business that is not forced to liquidate its assets. The company operates 7400 stores globally, which spells bad news for Blockbuster employees and brick-and-mortar movie rental mavens.