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

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…
3 comedies on Prime Video you need to watch in December
Eddie Murphy and Tracee Ellis Ross in a gym looking at something shocked in a scene from Candy Cane Lane.

The three comedies on Prime Video you need to watch in December include a diverse mix of titles. There’s an Academy Award-winning film that is worth watching if you haven’t gotten around to it yet. Even those who have already watched will probably pick up on little details they missed the first time around. There’s also a new Christmas movie and a cult classic film from the late ‘80s to add to your watch list.

Prime Video has tons of great movies, but the streaming service really excels in the comedy department. From absurdist comedy to slapstick humor, comedy movies you can watch with the kids and ones to watch once they go to bed, there’s no shortage of options. This month, these three movies are worth checking out. Once you finish working through them, check out the best movies on Amazon Prime Video for an even wider selection.
Everything Everywhere All At Once (2022)
Everything Everywhere All At Once | Official Trailer HD | A24

Read more
7 best kids Christmas movies ever, ranked
Charlie Brown and Snoopy decorating a tree in A Charlie Brown Christmas.

Christmas is a wonderful time for people of all ages, but let's face it, kids bring an entirely new level of joy to the occasion. It's in children that the magic of the holiday is most alive, so if you're looking for ways to get into the holiday season, there's often nothing better than finding a great kids Christmas movie to enjoy.

Some of these movies may also be some of the funniest Christmas movies, but what these movies really do well is capture the spirit of a holiday that kids around the world love to celebrate.
7. The Polar Express (2004)
The Polar Express (2004) Official Trailer - Tom Hanks, Robert Zemeckis Movie HD

Read more
7 most underrated South Park episodes ever, ranked
Kenny, Stan, Kyle, and Cartman dressed as the Avengers in "South Park."

Having run for over 25 years, South Park remians one of the most controversial shows ever and continues to shake the cultural landscape after more than 300 episodes. While many of these animated escapades are undoubtedly funny and offensive, some haven't received as much praise as they should have.

Not every episode from such a long-running show is bound to be a hit, but some overlooked gems like these seven shouldn't stay buried in the backs of fans' minds.
7. Pinewood Derby

Read more