Blockbuster is about to die, bankruptcy coming next month

A Blockbuster location in Moncton
Image via Wikipedia

For a couple of years now, primarily on the podcast (Most recently, Global Geek News Podcast #72), I have been repeatedly predicting the death of Blockbuster and that prediction is about to come true.

According to The LA Times, Blockbuster plans for file Chapter 11 bankruptcy in the middle of September.  They have reportedly been trying to plan this with the movie studios so that they can close between 500 and 800 unprofitable stores (out of 3,425 stores) and make more of a push to streaming content to try to compete with companies such as Netflix.  It is also looking to restructure around $1 billion in debt.

Blockbuster has taken a major turn for the worse recently as it has lost over $1.1 billion since the start of 2008, has closed 1000 stores in the past year and was recently delisted from the NYSE.  The once great company now has a market value of just $24 million.

I don’t think that closing 500-800 stores and trying yet another push into the streaming world is going to be enough.  I think that it may help them get through the year but I still believe that Blockbuster will be nothing but a memory by the end of next year.

If you want to get all of the details about the pre-planned bankruptcy, check out the LA Times’ story about the upcoming death of Blockbuster.