Blockbuster’s Q2 numbers are out, and they’re even grimmer than Wall Street expected, with revenue declining 20 percent to $788 million. BB’s net losses also increased to $69 million. Blockbuster’s only positive news, if you want to call it that, is that it was able to receive yet another debt reprieve from its creditors. BB’s massive debt repayment of $42 million, out of a total debt burden of nearly $1 billion, is now due at the end of September.
Fast becoming a master of spin without peer, BB CEO Jim Keyes offered the following on the latest forbearance agreement:
“While making progress, this extension allows additional time to complete these complex, multiparty negotiations . . . To take advantage of its unique multi-channel model and revitalize its global brand, Blockbuster will require an improved capital structure. Our objective is to complete a recapitalization as soon as possible so we are better positioned to focus our attention and resources on the strategic opportunities to continue our business transformation.”
This after BB announced that they will be offering games as well as movies in there rent-by-mail business, an obvious edge over rival NetFlix.
We may be seeing the final plunge of the behemoth that was the staple and oft-duplicated, brick and mortar rental chains.
Having been a customer AND employee of Blockbuster I'm a little saddened at the thought of it's demise, but certainly not surprised. They thought themselves invulnerable to the changing market and never truly looked out from the Mt. Olympus they created for themselves in Texas.
When they close the last door I'll mourn only because it didn't have to end like this.
"Too Soon from the Cave, Too Far from the Stars"