L.A. Times: Blockbuster to file Chapter 11 next month

By on Aug 27, 2010 at 9:28 AM
Retail August 27, 2010

The Los Angeles Times is reporting that the once mighty Blockbuster will file for bankruptcy as early as next month. The Times quotes anonymous sources “familiar with the matter” in the report and explains that the filing could take five months and see 500 to 800 retail outlets closed. The company is seeking protection under Chapter 11 in order to restructure their current debt-load of roughly $1 billion (that’s billion with a “b”). The bankruptcy is being described as pre-planned, and most of Blockbuster’s creditors will have some sort of deal in place with the company when the filing is made official.

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  • Justina

    Chapter 11 means they get to basically regroup, not shut down entirely… They’re going to close a bunch of locations nationwide and pay off their debts.

  • Alejandro

    This makes me sad to hear this. It is sad times are changing and companies like Netflix flourish whilst Blockbuster continues to lose business. Call me old school, but I enjoyed (and still do) going into Blockbuster, hearing the bell ding when you enter, smelling that smell the shop has and spending time decided on what movie/game you want to take home. Netflix does not give you any of that. Sure it is convenient and easy, but it is not going to give you memories like a Blockbuster shop did.

  • xj94

    Wow…after all the companies that have gone under people still don’t understand that Chapter 11 doesn’t mean it’s game over. If you look at other (more complete) articles they say it’s a planned chapter 11 protection filing for a 5 month period to relieve themselves of the debt load. It’s not like netflix and redbox have something that nobody else can do…hell blockbuster is already copying both (except the netflix streaming because it just isn’t profitable yet)

  • Rosanna

    Franchises like BlockBuster are not to be pitied and we need not genuflect toward NetFlix either. Both have put the very backbone of local economy, Mom and Pop stores, out of business and destroying local economy. t

  • Jjb0894

    It doesn’t surprise me. Why use them when there’s Netflix?

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