Blockbuster preparing for September bankruptcy
The next few months might prove to be the swansong of Blockbuster Video. According to the Los Angeles Times, the company has been discussing with movie studios its intentions to file for bankruptcy in September. Over the last week, Blockbuster executives have met with the heads of six Hollywood studios, informing them of a "pre-planned bankruptcy," in which the company's creditors would agree to the declaration ahead of time.
Blockbuster has been dealing with a debt of nearly $1 billion, and has closed several hundred stores in the last few years. It's seen surprisingly stiff competition from mail-order services like Netflix and kiosk services like Redbox, and has been trailing behind in its attempts to offer similar services to customers.
— Will Greenwald