Blockbuster has fought valiantly in recent years to defend itself against threats from online contenders such as Netflix, Hulu and YouTube. But now it seems as if the industry heavyweight is getting ready to throw in the proverbial towel.
Yes, after ruling the home video rental roost for over a decade, Blockbuster is reportedly preparing to file for bankruptcy – something which could happen as early as September.
According to the LA Times, Blockbuster execs and senior debt holders recently held top-secret meetings about kicking off a “pre-planned” bankruptcy in mid-September.
“[The company] is hoping to use its time in Chapter 11 to restructure a crippling debt load of nearly $1 billion and escape leases on 500 or more of it 3,425 stores in the US,” the Times explained.
“[So], maintaining the support of Hollywood’s film studios during the process will be critical so that Blockbuster can continue to rely upon an uninterrupted supply of new DVDs.”
Blockbuster has apparently lost a whopping $1.1 billion since 2008 and is facing heavy interest payments on a staggering $920 million debt.