Blockbuster Reportedly Nearing Bankruptcy, Hopes For A Miracle

Well, we can't all act surprised at the same time. For years now, Blockbuster has been dwindling in importance. The store was once the face of movie renting, and now it's the face of what used-to-be. Ever since Netflix stormed onto the scene with a more convenient method of renting DVDs, Blockbuster has been declining. Stores have started to shut down, and even Blockbuster's attempts to mimic Netflix never really worked out. And once Netflix launched their Watch Instantly streaming service, the final nails began to sink into Blockbuster.

According to the LA Times, Blockbuster is preparing to file for bankruptcy next month. The company has already had some close calls in the recent months, but debt holders agreed to hold back as the company made last ditch efforts to turn things around. According to the report, execs from the company and senior debt holders met this past week with six major movie studies to "discuss their intention to enter a pre-planned bankruptcy in mid-September."

Unlike Circuit City, which simply folded and now fails to exist save for an online port, Blockbuster will still try to right the ship post-filing. Reportedly, they will use their borrowed time to restructure debt, but exact plans beyond that aren't yet known. Whatever happens, we've all seen this fall coming. After dominating for so long, Blockbuster never has kept pace with more nimble rivals. And these days, that kind of lallygagging simply won't pay off.