Blockbuster Files for Bankruptcy

on September 23, 2010


Blockbuster has $1.46 billion in debt against $1.02 billion in assets according to a Chapter 11 petition filed today in U.S. Bankruptcy Court in New York.

The movie rental company has been on the verge of bankruptcy for some time now, due in large part to the strong competition it faces from the likes of Netflix and Redbox. Blockbuster has been forced to shutter many of its physical locations as a result of the financial pressures it faces.

"To preserve its three-decade long developed brand value, Blockbuster seeks a restructuring that permits a significant deleveraging of its business so that it can move forward at the digital clip at which its industry and competitors are currently running," said Jeffery Stegenga, the company's restructuring officer, in a court filing.

Tags: Blockbuster, Netflix, Redbox

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