Things just keep getting worse for you if your name isn’t Netflix.
According to THR, Blockbuster delayed their $42.4 million debt payment, and that the company’s shares will be delisted by the New York Stock Exchange. Those very stocks closed on Thursday at 23 cents, which was 90% lower than where it was the day that the company picked up Jim Keyes as their new CEO.
Keyes was supposed to have his contract run out this week, but the company is saying that his contract has since been extended for “an unspecified amount of time.” Delisting, for those like me who may not have been too keen on that term, means that the stock of a company is removed from the respective stock exchange, so that the investors no longer trade shares on the said exchange.
Things are even worse for those behind Movie Gallery, who could not have had a worse month of May.
According to Home Media Magazine, the company reported a net loss of more than $100 million during the four weeks between May 10 and June 6.
Since their second bankruptcy filing back on February 3, the company has reported a net loss of $170.7 million on revenue of $344 million. Personally, while both of these stories are massive problems for both respective companies, they speak to much deeper things for the business. The slow destruction of the thing known as the brick and mortar store has been more than publicized, so this is just another step in what looks to be a bad future for this business model.
Source: THR / Home Media Magazine
Joshua Brunsting
Born in Saugatuck, Michigan, Josh Brunsting has been a fan and lover of the medium that we call film since day one. Holding a degree in Journalism from Grand Valley State University in Allendale, MI, Josh has now turned his love of any and everything related to film into what will hopefully one day become a career, culminating in complete world domination. Josh is currently a writer for GeeksOfDoom.com, and even has time to plan his wedding, have a job at a local Starbucks, and take care of a golden retriever named O’Malley.