Blockbuster Facing Possible Bankruptcy
Back in 2008, we wrote that Blockbuster’s CEO Jim Keyes
was looking to unlock the chain’s potential by creating a deeper connection
At the time, the company offered a few ways it might do that
including opening stores earlier to allow consumers to drop-off or pick-up
movies before heading to work. Another idea was to add coffee bars and fountains
to stores to make them more of a destination. There was also to be a dedicated
play area for kids.
Since that time, Blockbuster has closed large numbers of stores
and pursued a joint venture with NCR to place video rental kiosks at other
retail locations. In the past week, Sheetz announced it would allow Blockbuster
kiosks to be installed at its 365 convenience stores.
Now reports suggest that tightened credit on Blockbuster
by movie studios may force the chain into bankruptcy.
“Should we not be able
to generate sufficient cash flow from operations and should the studios tighten
or eliminate credit terms, we may determine that it is in the company’s best
interests to voluntarily seek relief through a pre-packaged, pre-arranged or
other type of filing under Chapter 11 of the U.S. Bankruptcy Code.”
Questions: What do you think the future holds for Blockbuster? Has the day
of the video store ended or is it simply in need of recreation?