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Video-rental company Blockbuster has stated in a regulatory filing that it will be forced to file for bankruptcy if it can find no other way to address its debt load. Blockbuster’s 2009 net operating loss certainly did not help matters and is the main reason that Blockbuster is considering the move.
Image: flickr
Blockbuster has also cited the onslaught of formidable competition, such as the low-priced DVD rental services that Redbox and Netflix provide, as another source of problems for Blockbuster. The arrival of newer video-rental services have left Blockbuster struggling to find a profitable niche in the market.
If its operating results do not improve and if it is unable to refinance or restructure its debts, Blockbuster warns, it will need to file for bankruptcy and/or make other sweeping changes. A Reuters report places Blockbuster’s debt somewhere in the neighborhood of $1 billion, a massive figure that will loom over the company’s practices for the foreseeable future.
[Reuters]
