Skip to main content

Blockbuster declares bankruptcy

Image used with permission by copyright holder

In news that should surprise no one that has been following the  mega-movie rental chain, the Wall Street Journal is reporting that Blockbuster has finally lost the battle against its $900 million of debt, and will be filing for Chapter 11 bankruptcy to protect itself from creditors. The video rental store will file a “pre-packaged” bankruptcy plan, which will allow the chain to stay in business and return within a few months after restructuring.

Blockbuster has been doing everything possible in order to avoid bankruptcy, but the signs have been pointing towards this for months. A few weeks ago, executives from Blockbuster quietly began to admit defeat by meeting with Hollywood executives to discuss the company’s new business model following the upcoming restructuring.

The news of Blockbuster preparing for bankruptcy kicked off a quiet struggle to determine who would control the fate of the re-structured company. Last week that battle ended when corporate raider Carl Ichan managed to purchase one-third of Blockbuster’s debt, guaranteeing that he will be the driving force behind the restructuring, or at least be in a position to block any plans that he disapproves of.

Once the bankruptcy is official, Blockbuster will then begin to close between 800 and 1000 stores out of the 3,400 stores that were not among the 1,000 that have already closed in the past year. Once the bankruptcy ends, which could be between 3 months and a year, Blockbuster intends to return with a bigger emphasis on digital distribution, as well as building their kiosk rentals.

Blockbuster joins fellow movie rental chain Movie Gallery, who filed for bankruptcy and closed all the Hollywood video stores earlier this year.

Editors' Recommendations

Topics
Ryan Fleming
Former Digital Trends Contributor
Ryan Fleming is the Gaming and Cinema Editor for Digital Trends. He joined the DT staff in 2009 after spending time covering…
10 best stop-motion animated movies of all time, ranked
Coraline crawls through a dark tunnel.

Stop-motion animation is one of the most creative and beloved subgenres -- and it only seems to get better with time. The greatest movies in this category showcase the hard work and artistry of the inventive minds behind these stories, which often take a long time to commit to film. Each frame is a painstakingly crafted work of art, all aimed at creating immersive worlds full of unforgettable narratives and characters.

From obscure modern classics like The Wolf House to genre-defining masterpieces like The Nightmare Before Christmas, the best stop-motion animated movies highlight the full potential of the medium to deliver complex stories alongside gorgeous and distinct visuals. The craftmanship on display in these films is a testament to the power of animation and those who boldly push the genre's boundaries to create enchanting realities.
10. James and the Giant Peach (1996)

Read more
The 50 best anime on Hulu right now
Gintama anime key art featuring Gintoki leading the supporting cast of the series.

Even when it's not the primary destination, Hulu is still easily among the best mainstream platforms to stream some of the best anime available. It's an especially great supplement for audiences already fans of the streamer's live-action originals, boasting impressive diversity in its anime offerings across film, TV, and various genres.

For customers who aren't subscribed, the Disney Bundle is more than worth consideration to back up Hulu's anime library. This package deal gives viewers countless hours of content through Disney+, ESPN+, and the base ad-supported Hulu plan. Fans will have access to all the Star Wars, Marvel Studios, National Geographic, and sports content they could hope for on top of Hulu's anime catalog.

Read more
Nuggets vs Mavericks live stream: Can you watch for free?
Nikola Jokic squares up a free throw on the court.

Luka Dončić and the Dallas Mavericks take on Nikola Jokić and the Denver Nuggets today. Playoff seeding implications aside, it's always a must-watch event whenever two of the greatest international players of all-time do battle.

This one is set to start in about one hour, at 3:30 p.m. ET, and will be televised on ABC in the United States. If you don't have cable or you're looking to finally cut the cable cord, there are a bunch of different ways you can watch a live stream of the game online.
The Best Way to Watch the Nuggets vs Mavericks Live Stream

Read more