Thfire.com Everyday news that matters Blockbuster one of the biggest DVD and games rental company has gone bust in US. They seems they cannot handle any more loses and finally filed for bankruptcy.
Blockbuster is broke!
The Dallas, Texas-based company said it had made the decision as part of attempts to cut its debts and restructure the business.
Agreements with its creditors will allow it to cut its debts from nearly $1bn to about $100m, Blockbuster said.
Blockbuster’s 3,000 stores in the US will remain open for the time being, the company’s statement said.
It has also secured a new $125m loan it says will allow it to keep working during the restructuring process.
“The process announced today provides the optimal path for recapitalising our balance sheet and positioning Blockbuster for the future as we continue to transform our business model to meet the evolving preferences of our customers,” Jim Keyes, Blockbuster’s chief executive said.
“Blockbuster will move forward better able to leverage its strong strategic position, including a well-established brand name, an exceptional library of more than 125,000 titles, and our position as the only operator that provides access across multiple delivery channels – stores, kiosks, by-mail and digital,” he said.
