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