Blockbuster Inches Closer To Failing, Has To Delist From NYSE

Things aren't looking great for Blockbuster. The company, which was arguably one of the most well-known movie rental outfits in the entire world, hasn't had the greatest of years ever since Netflix came into existence. For years, driving out to the nearby movie store for their nightly fix wasn't too much to ask. But as soon as by-mail became an option, suddenly the drive out felt like a huge inconvenience.

Netflix was grown consistently over the past few years, and at the same time, Blockbuster has seen fewer and fewer customers enter their stores. Blockbuster even tried the by-mail approach, but it was after Netflix grabbed the majority of those interested in such a service. Furthermore, Netflix offers something that Blockbuster doesn't: Watch Instantly. This allows Netflix subscribers with plans of $9/month or more to watch unlimited streaming films and TV shows from their PC or a variety of televisions or set-top boxes. That's a huge value-add, and Blockbuster has thus far been unable to create any acceptable substitute. Or at least one that people will pay attention to.


Over the July 4th weekend, the company has found itself fighting for its own freedom. Freedom from debt. The company has recently won approval to stay just one step ahead of bankruptcy, but it's only a one month reprieve on debt payments. Still, it was forced to delist from the New York Stock Exchange, which is a massive fall from grace. Once companies are forced to delist, it's a hard road back to recovery. In fact, most companies either fold or put themselves up for sale rather than attempt to pick up the pieces and start over.

Now, those holding around $440 million in debt have agreed to lay off until August 13, though some analysts suggest that even the month won't help Blockbuster to recover. Michael Pachter, analyst with Securities, had this to say: "Six weeks is not a long time in a tough economy, where nobody has much credit. There's nothing on the horizon that makes it look like Blockbuster is going to be more profitable."


It's hard to think that Blockbuster will ever be half the company it was, but could it shift itself enough to just stay alive? Who knows, but we're all hoping it doesn't follow the same path as the once-mighty Circuit City.
Via:  Reuters
Comments
AKwyn 4 years ago

I think once Netflix hit the market and once grocery stores started to include their own video rental stores. I guess that made Blockbuster irrelevant. I could go to a Redbox in my grocery store and I can just rent the movies I want that they have and return it as easily as well.

There's also the fact that Blockbuster is facing competition from Best Buy and Wal-Mart and the likes. Even they carry their own fully stocked movie lineup and even the best lineup from Blockbuster could not compete with what those stores has. So I guess an inability to change and stupid decisions doomed this company to bankruptcy.

animatortom 4 years ago

So the only way to save the corporation would be to replace the "BL" With a "C"!

giantjoebot 4 years ago

So the only way to save the corporation would be to replace the "BL" With a "C"!

LOL!!

Probably would work. That and games. I think if they had switched to games they might have done okay. Its been a while since I have been there, and I know they have a game section, but there selection and prices always kind of sucked. If they had slowly started increasing there game section, while lowering there prices, they might have done better.

Inspector 4 years ago

I just never went to blockbusters again since i was a  kid about 8 years old...  They really have some stupid prices and aren't worth the trouble to be returning it in a haste before you finish it... They could of improved in many areas.

twistedfate 4 years ago

those damn teens crashing in to blockbuster in dover Hampshire no lawsuit filed

 

 

realneil 4 years ago

So they fade away into history,......I'll get over it.

They were a PITA to deal with when I used to use them. My Debit Card wasn't good enough for them, they wanted my credit card number instead. They charged extra for DVD movies when they first came out too. I found a Mom & Pop movie rental place that was closer to home and a dollar cheaper to rent from and I never looked back.

I now use Netflix and a Roku too,......that's the way to go!

Chainzsaw 4 years ago

Blockbuster...how sad. They weren't fast enough to change in this modern day. This is what happens to companies that do not keep with the times. Good bye, hamsters (anyone remember those?)!

fat78 4 years ago

Their games are way to expensive now any ways compared to other places

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