This should come as no surprise, but it does appear that Blockbuster is on its way to bankruptcy. With over $900 million in debt, the once rental giant is now trying to secure a life line of some $150 million to stay afloat. But the company has already put 400 of its Canadian stores in hock already, so the end may be near.
The company tried securing a deal in which it would release movies from Sony and Fox 28 days before other companies such as Netflix and Redbox. But it appears that strategy has not worked as well as the company expected.
Analysts are expecting that Blockbuster will file for bankruptcy sometime around its next stockholders’ meeting on June 24, 2010.
I certainly hope that the government does not bail out this company. We have spent enough trying to keep too many companies afloat.