Blockbuster, Blockbuster bankruptcy, Redbox, Coinstar, DVD rental kiosk, movie rental vending machine, vending, vending machine, self-service machine
DALLAS -- Rumors that Blockbuster would file for bankruptcy proved to be accurate last week. The once dominant movie-rental chain has been struggling to compete in an environment where more consumers are renting movies from Redbox self-service kiosks and through subscription services like Netflix rather than through its stores. [see story]
The company filed in U.S. Bankruptcy Court in the Southern District of New York and has reportedly reached an agreement with bondholders on a recapitalization plan. A debt-reduction plan is in process to reduce debt from nearly $1.02 billion to about $100 million or less. The company assets are listed on the filing as $1.46 billion.
Blockbuster's Canadian operations remain debt free and probably will not file for bankruptcy, but may be sold off to reduce companywide debt.