Blockbuster Video to File for Bankruptcy

     August 27, 2010


Remember the last time you went down to your local Blockbuster to pick up a movie? Yeah, me either. Neither, it seems, can a lot of other people, which may explain why the rental chain is closing in on bankruptcy. The LA Times reports that Blockbuster execs have been in talks with six Hollywood studios about entering a “planned bankruptcy” sometime in September. The company is struggling under a staggering $1.1 billion in debt, but, rather than throw in the towel completely, still hopes to use their time under Chapter 11 to restructure. To do that, they need studio support to keep the shelves stocked during that time. I have fond memories of my local Blockbuster, where I first rented a Sega Saturn to play Panzer Dragoon and spent the summer of 1999 trying to watch all of the AFI’s 100 greatest films of the 20th century (unfortunately, I still haven’t seen them all). However, its plans to try to stay solvent by moving into both kiosk-based rentals and digital distribution seem overly ambitious for a company in its financial state. The question is: if Blockbuster went away, would it really be missed? Share your thoughts in the comments.

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