backtop


Print 71 comment(s) - last by callmeroy.. on Apr 30 at 10:41 AM

Blockbuster may have been busted by Netflix

For many years Blockbuster video enjoyed great success in the movie rental business. Blockbuster is one of the largest movie rental chains in the country, but the company has found that its continued existence is far from guaranteed.

Blockbuster has announced that there is "substantial doubt" about its ability to continue as a going concern. A going concern is a qualification that refers to an auditor's assessment of a company's ability to continue operations reports MSNBC.

Blockbuster is struggling with profitability and viability in the face of the rising popularity of mail-order rental services like Netflix the company stated in a SEC disclosure. Blockbuster had previously disclosed that an auditor was likely to raise doubts about its long-term viability.

Blockbuster stated last week that its revolving and term loan agreement had been amended giving the company a $250 million revolving loan for financing maturing on September 30, 2010. The company thinks it will be able to close the financing around May 11, but states that the closing of the loan is not assured at this point.

Blockbuster says that even if the loan is funded it, "may not have sufficient liquidity to finance the ongoing obligations of our business, which raises substantial doubt about our ability to continue as a going concern."

Blockbuster shares fell 3 cents to 85 cents in trading after hours after closing at 88 cents reports MSNBC. In July of 2008 Blockbuster was considering the purchase of now defunct Circuit City.  



Comments     Threshold


This article is over a month old, voting and posting comments is disabled

RE: screw Lackluster Video
By redeem4god on 4/7/2009 3:14:29 PM , Rating: 3
This person did not specifically mention anything about porn. you are assuming and being one dimentional. Blockbuster fails to encorporate MANY movie variations and/or themes.

There is also nothing wrong with being christian and liking a store because they DON'T carry that type . However, they fail to carry even christian, (no Da Vince code was not christian it was complete fiction/fantasy) films as well.

What most people do forget is that in order to carry porn it would require a different business class license and restrictions as far as locations etc etc.

Blockbuster is simply a horrible business.


RE: screw Lackluster Video
By Spivonious on 4/7/2009 3:43:42 PM , Rating: 2
I don't know what your local store is like, but when I worked there we got all of the "Unrated Extras" versions of new releases. As far as not carrying certain titles, there's only so much space on the shelf. Can you give an example of a movie that you couldn't find because BB had purposely not purchased any copies?


“We do believe we have a moral responsibility to keep porn off the iPhone.” -- Steve Jobs

Related Articles













botimage
Copyright 2014 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki