Dyer Sez: It appears that Blockbuster video is planning on declaring bankruptcy. No surprise after they spent the last few years getting smacked around by Netflix and the RedBox, in addition to trying to market a ‘luxury’ service (at a higher consumer price point than their competitors) in the middle of a depression.
Although I truly feel bad for the companies employees (working anywhere with no job security is quite stressful) I have to wonder if this isn’t some sort of karmic “gotcha”. After all, It wasn’t all that long ago that the only video rental stores around were locally owned and operated…until, that is, Blockbuster moved in and put every Mom-and-Pop video joint out of business.
Or is this simply just another sign of our increasingly crumbling economy as we spiral ever closer to the worst economic disaster in human history?
Story from Dallasnews.com
Blockbuster appears poised for mid-September bankruptcy filing
Monday, August 30, 2010
By MARIA HALKIAS
September could be the month Blockbuster Inc. finds its way to bankruptcy court.
The Dallas-based company has been warning for almost two years that it might need bankruptcy court protection to reorganize its nearly $1 billion in debt, as it struggles with dwindling cash and a shrinking business hurt by competition and its own store closings.
A “pre-planned” bankruptcy filing in mid-September is now considered the most likely scenario for Blockbuster, according to unnamed sources quoted by the Los Angeles Times. That would require agreement from the company’s biggest creditors and suppliers, among others.