Pssst, Mac, Wanna Buy a Video Rental Chain?
Blockbuster Inc. is looking for a buyer. The chain has already been in bankruptcy since last fall. Selling itself to the highest bidder is the only way to avoid liquidation.
Not that the rot hasn't started already. The news comes as Blockbuster has been shedding brick-and-mortar stores, closing 609 of 3400 last month.
Blockbuster filed for Chapter 11 in September 2010. Since then its creditors have been petitioning the court for payment of various seven-figure sums.
As an opening gambit for the sale, Blockbuster's four largest creditors -- all venture capital firms -- have bid $290 million. The Los Angeles Times explains: "The offer is intended to draw other buyers and create a floor on the price. If no other bids are submitted, however, the four creditors would end up controlling the DVD rental sales company."
Blockbuster's main competition, of course, are Netflix in online and by-mail rentals, and Redbox in kiosk rentals. While it has attempted to add online, mail, and kiosk options to its brick-and-mortar strategy, its efforts have paled in comparison to Netflix and Redbox.