Even though Blockbuster was said to be one of the companies to disappear in 2011, I just didn't think that the end would be so close. Well rumor has it that the once Behemoth movie rental company will file for bankruptcy next month. And it seems that these rumors have legs, as a meeting was said to have taken place between six of the major movie houses and Blockbuster to alert them of the filing next month.
Obviously a bankruptcy filing doesn't mean that a company is going bye bye, but it does make it clear that Blockbuster is in trouble. Blockbuster is said to be on track to close 500 more stores adding to the 1000 that were closed last year. Unless Blockbuster does some serious restructuring of their business plan, the mid-September filing will not help them. The problem is that Blockbuster continued to operate with an old antiquated system which made them a lot of money at one time. But the refusal to change how they operated (until it was too late) along with the Netflix tsunami, Blockbuster stayed on a collision course with Bankruptcy.
So now Blockbuster will try to pick themselves off the floor with a stronger push in the mail-order and digital rentals. Will they have the ability to restructure themselves during the bankruptcy to become a viable business, only time will tell......
But the smart money says no!!!
[Gizmodo]
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