Blockbuster Said to Plan Bankruptcy Tomorrow With Loan

[dkf]

http://www.bloomberg.com/news/2010-09-22/blockbuster-said-to-plan-bankruptcy-filing-tomorrow-has-125-million-loan.html

Blockbuster Inc. is set to file for bankruptcy tomorrow in New York before the stock market opens, using a $125 million loan to reorganize so it can compete with rivals such as Netflix Inc. in renting movies online, according to a person with knowledge of the planned petition.

Billionaire investor Carl Icahn, who bought about one-third of Blockbuster’s bonds, will join with a group of creditors in swapping their debt for all of the video-rental company’s stock, according to the person and two others who declined to be identified because the discussions are private.

Blockbuster, saddled with more than $900 million in debt, has stopped paying interest to its lenders. The company, led by Chief Executive Officer James Keyes, has said it may have to file for bankruptcy as it tries to restructure its operations and finances.

[Wickerman]

1. Blockbuster?

Weren't they those asses that took away dozens of my neighborhood movies stores that had tremendous selection to offer me thousands of copies of the latest hollywood crap? May your corpse rot alongside those of the moms and pops your big box store destroyed.

[dkf]

2. Hey at least they employed people in the neighborhood.

Netflix has even less employees. How many do they employ anyway?

[customerserviceguy]

6. Maybe you don't need that many employees

to dispense something that can be efficiently distributed through a vending machine.

[dkf]

7. Lol. That is pretty funny coming from customerserviceguy.

[customerserviceguy]

8. As a matter of fact

If people used my company's automated phone and Internet options, they wouldn't need me as much. But there are always going to be those who need "special handling", and all of the rest of you will pay for them.

[dkf]

9. Non Internet users are a dying breed.

[customerserviceguy]

10. There are enough of them out there

to keep me in a job until I retire, for sure. I'd bet that in my area, we'll have enough of them to last for another twenty years after I take my first retirement check.

If you've ever sat in a call center, you realize there is such a thing as a stupid question.

[Rex]

3. Oh great...are we expected to bail out another failure venture? JK.

Wow $900 million, what a bunch of idiots.

[The Northerner]

4. Huh? Where in the article does it state that tax payers might bail Blockbusters out?

[SoCalDem]

5. Huh?? I wonder how an individual would fare..

I'm broke & need to file for bankruptcy.. hows about you loan me a bundle o'cash to help me over the rough spots:)

If you run a business that is failing, it's time to close it down..not borrow more money to prop up a failed business plan.