Video Game Rental Giant Considers Going Down For The Count

Online, March 19, 2010 (Newswire.com) - Long time video and game rental company Blockbuster has enjoyed success for decades. Through the years Blockbuster has amassed 9,000 plus stores with a net worth of approximately $2.15 billion. Blockbuster started in Dallas, Texas in 1985 it has enjoyed unparalleled success since its inception because of its one of a kind business model at the time and their no late fee policy. Blockbuster has amazing prospered for decades bu now in recent years due to financial losses and competitors like Netflix and Redbox. Both Netflix and Redbox are Blockbusters major rivals and Blockbuster has spend lots of money battling them in marketing.
Blockbuster has unsuccessful tried to copy the business models of Redbox's stand alone kiosks and Netflix's DVD rental mailing service. The once giant of video rental seems like they might have to bow out of the game. As of Dec 31st 2009 Blockbuster has accrued a debt of $964 million. With financial losses of $394 million a period. In 2009 Blockbuster has shut 572 retail stores in the United states alone.also a failed attempt to buy struggling retail electronics store Circuit City has servilely depleted them financially.
It seems that their business model has become outdated, a former competitors of Blockbusters Hollywood video had a similar business model. Hollywood video has recently filed chapter 11 and liquidated around 760 of their stores. With its stock dropping from forty cents to 27 cents a share it seems that Blockbuster doesn't have many other financial venues to keep from shutting down. There have been talks of Blockbuster selling to an Australian company called Video Ezy upon the approval of the Australian competition and consumer commission. Blockbuster has recently retained the services of the law firm of Kirkland and Ellis to evaluate their restructuring options and chapter 11 bankruptcy. With such a tough fiscal year and no way out it seem that Blockbuster might really be down for the count.