Blockbuster files for Chapter 11 protection; Canadian operation not affected
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Hey there, time traveller!
This article was published 23/09/2010 (5473 days ago), so information in it may no longer be current.
NEW YORK, N.Y. – Blockbuster Inc. filed for Chapter 11 bankruptcy protection early Thursday, according to a report on the Wall Street Journal website.
It says Blockbuster and its U.S. subsidiaries filed voluntary petitions with the U.S. Bankruptcy Court for the Southern District of New York.
At the same time, Blockbuster Canada issued a statement saying its operations are not affected by the filing in New York.
Blockbuster Canada said it operates independently of the U.S., is financially stable and is “conducting business as usual.”
Once a home entertainment powerhouse, Dallas-based Blockbuster has been losing market share for years as more consumers switch to video subscription services like Netflix and video on demand services.
Blockbuster peaked at about 9,100 stores in 2004, but was down to about 5,800 as of August while Netflix membership grew from 2.6 million to about 15 million in the same period.
The Journal cited unnamed sources earlier as saying Blockbuster was working with creditors to develop a bankruptcy restructuring plan that would free it of debt and allow the company to keep some stores open and focus more on digital distribution.
If Blockbuster missed an interest payment on Sept. 30, more than US$900 million in debt would be due in full.