Blockbuster bankruptcy highlights dangers to investors of obsolete business models

The filing for bankruptcy protection by the US video rentals firm Blockbuster is a stark reminder of how technological and cultural changes can hit business models.

blockbuster

On September 23, the once-thriving US video (and latterly DVD) rental chain Blockbuster Inc. filed for voluntary Chapter 11 protection with the US Bankruptcy Court for the Southern District of New York. The move will allow Blockbuster to restructure its business, helping it to recapitalise its balance sheet and reduce its debts from almost $1 billion to $100 million.

As part of the restructuring, investors in $675 million worth of 11.375% senior secured notes, due to mature in 2014, will see

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

Register

Want to know what’s included in our free membership? Click here

This address will be used to create your account

Most read articles loading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here