Blockbuster Considers Shutting All Stores

Blockbuster stated in its Securities and Exchange Committee filing last Monday that it may close all 7,400 retail locations.

The movie rental company said it has "substantial doubt" about continuing as a "going concern," meaning it could be forced to liquidate its assets, according to a report by PC World.  ...On April 3, Blockbuster announced an agreement with JP Morgan and a group of lenders, led by Monarch Alternative Capital LP and Silver Point Capital, L.P., for a $250 million revolving loan refinancing with a maturity date on Sept. 30, 2010...  on top of the recent loan agreement, Blockbuster already has $780.9 million debt, the PC World report noted.

No details were given about what will happen to the independently-owned Blockbuster franchises.

Just last year the megalithic movie rental chain was trying to buy out Circuit City. It finally withdrew its offer for the Circuit City chain, which has since gone under.

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Related Reading:

Blockbuster May Shut Retail Stores, April 2009, PC World