Featured Articles

5th Generation Broadwell 14nm family comes in three lines

5th Generation Broadwell 14nm family comes in three lines

Intel's 5th Core processor family, codenamed Broadwell, will launch in three lines for the mobile segment. We are talking about upcoming…

More...
Broadwell Chromebooks coming in late Q1 2015

Broadwell Chromebooks coming in late Q1 2015

Google's Chromebook OS should be updating automatically every six weeks, but Intel doesn't come close with its hardware refresh schedule.

More...
New round of Nexus phone rumour kicks off

New round of Nexus phone rumour kicks off

Rumours involving upcoming Nexus devices are nothing uncommon, but this year there is a fair bit of confusion, especially on the…

More...
Nvidia officially launches the 8-inch Shield Tablet

Nvidia officially launches the 8-inch Shield Tablet

As expected and reported earlier, Nvidia has now officially announced its newest Shield device, the new 8-inch Shield Tablet. While the…

More...
Aerocool Dead Silence reviewed

Aerocool Dead Silence reviewed

Aerocool is well known for its gamer cases with aggressive styling. However, the Dead Silence chassis offers consumers a new choice,…

More...
Frontpage Slideshow | Copyright © 2006-2010 orks, a business unit of Nuevvo Webware Ltd.
Thursday, 12 August 2010 10:27

Blockbuster could go bankrupt

Written by David Stellmack


Forced to make changes to survive
Despite the announcement that Blockbuster will start offering video games as part of its postal rental model, the company is still apparently in deep financial trouble. This follows Blockbuster being delisted by the NYSE in early July.

Blockbuster has made a number of moves since the delisting, including getting a forbearance agreement to delay a reported $42 million in interest payments. Now, the company is going to need additional extensions to recapitalize in order to avoid filing for actual bankruptcy. Creditors are said to already be pushing for Blockbuster to accept a Chapter 7 filing.

The pressure and change from the traditional retail rental model into a number of other models has not translated well for Blockbuster. The company was slow to adapt to changes, including cheap kiosk rentals, postal rental and streaming media. The company is finally engaged in all three of these, but is apparently not very successful at any of them yet.

Analysts that we have spoken with expect Blockbuster to announce the closing of more retail units, a bigger push on the postal rental business, continued growth in the kiosk rental business, and aggressive growth in the electronic/streaming business as their plan moving forward. It might be hard, however, to close many of the retail locations, according to those we spoke with, due to long leases with no ‘out’ clauses.

No matter, it appears that anyway that you look at it things are going to be tough for Blockbuster; and they have a tough road ahead with a lot of changes of they are going to return to profitability again.

David Stellmack

E-mail: This e-mail address is being protected from spambots. You need JavaScript enabled to view it
blog comments powered by Disqus

 

Facebook activity

Latest Commented Articles

Recent Comments