Blockbuster Possibly Filing for Bankruptcy

The famous movie rental company Blockbuster isn’t doing that well. Doing that well, is actually a major understatement. The company is getting very close to filing for bankruptcy. Representatives of the company have been meeting to go over the exact plans of filing for chapter 11 and so forth.*

If Blockbuster filed for bankruptcy that would mean 500 of it’s 3,500 would close down. 500 locations may not seem as that many, but in fact that is a big amount of stores to close. We have all become very accustomed to having a Blockbuster right around the corner or down the street. Well, with this possible Bankruptcy filing that changes a lot of things.

Let’s take a look at why a bankruptcy filing is even being talked about, well, Blockbuster has lost more than $1 billion since 2008 not to mention the debt it has accumulated since then is more than $900 million.* That is a lot of money!!

Most of the revenue the company has been making is going to paying off that gigantic debt. And with filing for bankruptcy they can restructure their company and also get away from paying a large amount of the debt they have by having creditors take on the debt.*

Read more about Blockbuster on the next page.