Blockbuster Preparing for Bankruptcy?

blockbuster preparing for bankruptcy 665

Former video rental giant Blockbuster may be getting close to filing for bankruptcy as a way to escape a mammoth debt burden of over $1 billion. According to reports in the Los Angeles Times and elsewhere, Blockbuster representatives have been meeting with major movie studios to outline their plans for a bankruptcy filing that would see the company shuttering as many as 500 of its nearly 3,500 retail locations. If Blockbuster wants to keep its core rental business going during the bankruptcy, it needs to make sure its relationships with major studios are smooth so the company can continue to offer new movies and releases as they become available on DVD.

By planning the timing of a bankruptcy filing—and getting its major debtors and business partners on board with the plan before the filing—Blockbuster may hope to minimize disruption to its business operations and revenue streams.

Blockbuster has lost more than $1 billion since 2008, and has racked up over $900 million in debt. A good portion of the company’s revenue is going towards servicing that debt; a Chapter 11 bankruptcy restructuring would enable the company to escape a substantial portion of that debt burden in exchange for creditors taking over sizable portions of the company.

Earlier this month, Blockbuster cancelled its second quarter financial conference call and announced it had reached a forebearance agreement with its debt holders as the company moved to work out a recapitalization plan.

Emerging Tech

Awesome Tech You Can’t Buy Yet: Folding canoes and ultra-fast water filters

Check out our roundup of the best new crowdfunding projects and product announcements that hit the web this week. You may not be able to buy this stuff yet, but it sure is fun to gawk!
Home Theater

The best movies on Netflix in December, from 'Buster Scruggs’ to endangered cats

Save yourself from hours wasted scrolling through Netflix's massive library by checking out our picks for the streamer's best movies available right now, whether you're into explosive action, witty humor, or anything else.
Home Theater

New TV? Here's where to go to watch the best 4K content available

Searching for content for your new 4K UHD TV? Look no further. We have every major source of the best 4K content, along with the cost, hardware requirements, and features that make each service worth a look.
Movies & TV

Movies Anywhere service adds Comcast films to its library and devices

Movies Anywhere lets you watch movies purchased from different services all in one place, and it just got even better with the addition of Comcast, which joins Microsoft, Amazon, iTunes, Google Play, Vudu, and FandangoNow.
Home Theater

What are HDMI ARC and eARC? Here’s how they can simplify your home theater

HDMI ARC is one of the coolest TV features at your disposal. But if you're like most folks, you have no idea how it works, if you even know what it is at all. Here's our primer on HDMI ARC, as well as the next generation technology, eARC.
Movies & TV

Out of movies to binge? Our staff picks the best flicks on Hulu right now

From classics to blockbusters, Hulu offers some great films to its subscribers. Check out the best movies on Hulu, whether you're into charming adventure tales or gruesome horror stories.
Deals

The best 4K TV deals under $500 and over 50 inches

Big-screen TVs with high-resolution displays and 4K color have dropped so far in price that you can find highly rated 50 to 55-inch models under $500. We searched major retailers for the best deals on 4K UHD TVs.
Movies & TV

The best new movie trailers: ‘Avengers: Endgame,’ ‘Bumblebee,’ ‘Alita,’ and more

Everyone loves a good trailer, but keeping up with what's new isn't easy. That's why we round up the best ones for you. This week, it's the first trailer for Avengers: Endgame, as well as new trailers for Alita: Battle Angel and Bumblebee.
Movies & TV

The best movies on Amazon Prime right now (December 2018)

Prime Video provides subscribers with access to a host of fantastic films, but sorting through the catalog can be an undertaking. Luckily, we've done the work for you. Here are the best movies on Amazon Prime Video right now.
Movies & TV

Best new shows and movies to stream: ‘The Marvelous Mrs. Maisel’ and more

Need something to watch this weekend? Check out our list of the best new shows and movies to stream right now. On the list this week: The Marvelous Mrs. Maisel season 2, Neo Yokio: Pink Christmas, and more.
Movies & TV

'Prime'-time TV: Here are the best shows on Amazon Prime right now

There's more to Amazon Prime than free two-day shipping, including access to a number of phenomenal shows at no extra cost. To make the sifting easier, here are our favorite shows currently streaming on Amazon Prime.
Movies & TV

'Stranger Things' season 3 teaser reveals the new episodes' titles

With a sophomore season as strong as its first, Stranger Things is now moving on to season 3. Here's everything we've learned so far about the Netflix series' upcoming third season.
Home Theater

Wireless headphones are finally awesome, and these are our favorites

Between sleek form factors, prime audio quality, and the freedom of untethered listening, there has never been a better time to pick up a pair of wireless headphones. These are the best ones currently available.
Home Theater

Stranger Things season 3 predictions: Decoding the episode titles

Netflix has revealed the episode titles for season 3 of Stranger Things, and the eight titles could shed light on what we can expect to see when the hit show returns in summer 2019.