Results 1 to 11 of 11
  1.    #1  
    Hi all,

    Amazing what technology can do to a firm. 25 years ago, when VCR was king, Blockbuster was all over the place. In my section of Queens NYC, there were 3 all in walking distance to my house. Now times have changed so!

    take care,

    Jay

    Blockbuster to file bankruptcy in September
    Source says that video retailer could close 500 to 800 of its stores

    Blockbuster to file bankruptcy in September - Business - Retail - msnbc.com

    Blockbuster Inc. will file bankruptcy next month, people familiar with the matter have told the Los Angeles Times.

    In a report on the Times website, the sources said the pre-planned Chapter 11 filing would be used to restructure a debt load of nearly $1 billion. A planned bankruptcy allows the debtor to work with creditors about payment terms ahead of the filing.

    Sources said the bankruptcy would take five months. During that time, the company would be able to shed some costly leases of its worst-performing stores. The source said Blockbuster would close 500 to 800 outlets.

    Movie studios, the Times reported, want the Dallas-based company to succeed so it can be a viable competitor to Netflix and Redbox.

    Netflix's success already contributed to the downfall of video rental chain Movie Gallery, which filed for bankruptcy protection for the second time earlier this year. The company, which also owns Hollywood Video, is in the process of closing its remaining 1,050 stores.

    Blockbuster also has been closing hundreds of unprofitable stores during the past two years. It still lost $65.4 million during the first three months of this year.

    The Associated Press contributed to this report.
    Please Support Research into Fibromyalgia, Chronic Pain and Spinal Injuries. If You Suffer from These, Consider Joining or Better Yet Forming a Support Group. No One Should Suffer from the Burden of Chronic Pain, Jay M. S. Founder, Leesburg Fibromyalgia/Resources Group
  2. RafRol's Avatar
    Posts
    544 Posts
    Global Posts
    570 Global Posts
    #2  
    I forgot the last time I walked into a Blockbuster.

    But I do remember by the time I got my second Netflix DVD I said to myself: "Why didn't I do this years ago?"
    Last edited by RafRol; 08/27/2010 at 01:04 PM. Reason: My memory is failing me...
    Visor/Sprint Springboard Expansion Module > Visor Platinum > Tungsten E > Centro (work) > Palm Pre
  3. groovy's Avatar
    Posts
    941 Posts
    Global Posts
    955 Global Posts
    #3  
    I liked Blockbuster but they had no vision. They had the means to pioneer video-by-mail and ended up lamely following Netflix' lead instead. It's a shame too. The two stores in my area are destined to contribute to the empty strip-mall blight that's spreading through the state.
  4. #4  
    it's their loss. They had so much time as the writing was on the wall when Netflix came out.

    It just showed that their leadership lacked all vision. If your leader doesn't think to the future, you're done.
  5. #5  
    another of those that have succumbed to "incumbent's disease.

    They suffered from the illness of market dominance and easy profits. The owned video rental -- having put out of business literally thousands of mom and pop and smaller chains.

    Their monopoly position allowed them to extract onerous fees and penalties from their customers -- and they for a very long tome very profitable.

    Blockbuster was not customer friendly, not sensitive to local user preferences -- and from its POV, it did not need to be.

    Nor did it see any reason to change.

    Netflix had a disruptive business model -- they charged much less, they didn't charge penalties or late fees, and they had a bigger selection.

    For most folks the only sacrifice was getting movie a day a later than Blockbuster. A reasonable trade off especially when a Blockbuster movie also meant busting their balls getting it back in time.

    Blockbuster COULD have competed -- but it would have required junking a very profitable business model.

    Blockbuster also carried lots of debt and had many super expensive store leases signed when the real estate market was strong.
    755P Sprint SERO (upgraded from unlocked GSM 650 on T-Mobile)
  6. #6  
    so profitable that they are bankrupt?

    even their new android app can't save them.
  7. #7  
    Quote Originally Posted by Workerb33 View Post
    so profitable that they are bankrupt?

    even their new android app can't save them.
    you possibly might want to read BARYE's entire post (though its true, like a fine wine, some prefer to savor the pungent tastes of only single sentences of his, at a time ...)
    755P Sprint SERO (upgraded from unlocked GSM 650 on T-Mobile)
  8. Micael's Avatar
    Posts
    736 Posts
    Global Posts
    739 Global Posts
    #8  
    Quote Originally Posted by groovy View Post
    I liked Blockbuster but they had no vision. They had the means to pioneer video-by-mail and ended up lamely following Netflix' lead instead. It's a shame too. The two stores in my area are destined to contribute to the empty strip-mall blight that's spreading through the state.
    No! They're too big to fail! Where's the OBB (Obama Bailout Bucks)?!
    The Law of Logical Argument: Anything is possible if you don't know what you are talking about.
  9. #9  
    I guess this means if we rent a bunch of videos today we won't have to return them?
  10. shaunooh's Avatar
    Posts
    78 Posts
    Global Posts
    82 Global Posts
    #10  
    I say Gabye.. So burned out on late fee's, who needs it. "Going" into the store 2 or more times to get a new release thats not there, then begging to look through the returned pile, no more I'm done with Blockbuster & Hollywood.
  11. #11  
    Raise your hand if you are surprised..... It's funny that nobody raised their hands..... Blockbuster didn't really make the proper effort to keep up with the evolution of how people are renting their movies and games and paid for it. Simple as that.


    My Themes:CLICK HERE

Tags for this Thread

Posting Permissions