Blockbuster Set For Mid-September 2010 Bankruptcy Filing

By On At 10:28 pm

It was only a matter of time.

According to the LA Times, the brick and mortar, video renting giant known as Blockbuster is getting ready to prepare to file for bankruptcy, come September.

Apparently, the company has been in the midst of informing studios that the company will file for bankruptcy in September, and that their plans are to enter a “pre-planned” bankruptcy. They will file for Chapter 11, and use their time to restructure their immense pile of debt, that runs nearly $1 billion.

The company has lost a total of $1.1 billion since the start of 2008, and over the past few months, in the face of new attempts to stem the tide of what is now the inevitable, such as adding video games to their by-mail rental service, they have slowly been getting closer and closer to this day.

And personally, I can’t help but say that they kind of had it coming.

With the rise of things like Redbox and of course, the big kid on campus, Netflix, the company has seen better days, and has also seen days where video renting wasn’t so stark. It looks as though the public doesn’t want a major video renting chain, that has high prices, a relatively poor selection, and a less expansive online streaming and by-mail rental service. The video renting game is currently one based on ease of use, price, and selection, making the only true business model for a brick and mortar store, if one hopes for it to succeed, a model the likes of a boutique store, with a more focused selection, and lower prices.

That said, it looks like the company isn’t done fighting yet. What do you think will happen to this beloved staple?

Source: LA Times

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About The Author

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.

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  • http://www.facebook.com/profile.php?id=1514743312 Ryan Walker

    As an employee of the long dead Sounds Easy Video in the early nineties, I read about the demise of Blockbuster with a sense of nostalgia. It feels like we’ve lost something when a group of people stand in line in front of a giant devilish red box on a Friday night at the local Maverik to rent a video. It seems to be a sign of our techno-centric times, but there was just something about browsing those physical aisles instead of clicking through virtual aisles of Netflix suggestions (Just for you!). My greatest film education was working at a brick and mortar video rental shop.

  • http://ryangallagher.org RyanGallagher

    I’m with you, Ryan. As much as I love the convenience of Netflix, it will never replace my desire to browse physical shelves, in the off chance that I might come across something new, that I hadn’t heard of, or forgot that I had once wanted to watch it.

    For me, this rental battle doesn’t have to be an all or nothing proposition. I use Netflix for some movies, that I know I want, but don’t need immediately, so that I can have them pop up in my life, as I need them. I also use the Watch Instantly feature, sparingly, but when there is a long wait for a movie, and my local video store is sold out, it’s a great option. Along with Netflix, I also support our local, independent video store, Movie Madness. Their selection is incredible, and I love wandering the various sections of the store that I might not necessarily see through Netflix’s recommendation engine.

  • http://www.facebook.com/peter.j.nehra Peter J Nehra

    I wonder how many stores will close if not all……..

    I liked the little Movie stores like Matinée Movies in Wilm, De i could rent DVDs in the late 90′s for $3 a night and they had the out of print and non mainstrem movies

  • http://www.facebook.com/peter.j.nehra Peter J Nehra

    I wonder how many stores will close if not all……..

    I liked the little Movie stores like Matinée Movies in Wilm, De i could rent DVDs in the late 90′s for $3 a night and they had the out of print and non mainstrem movies