Report: Blockbuster Plans to Sell Itself
This July 23, 2006 file photo shows customers enter a Blockbuster video store in Dallas. Blockbuster Inc. will start renting movies and television shows through a new gadget that may give consumers another reason to bypass the struggling video chain's 7,500 stores.
Updated at 4:45 PM CST on Thursday, Feb 10, 2011
Blockbuster Inc. plans to put itself up for sale after a disagreement with its creditors, according to a Wall Street Journal report.
The newspaper, citing sources it did not name, says the movie rental chain could not agree with its creditors on a plan to get cash to help it exit bankruptcy protection. The Journal says a bidder could offer more than $300 million for the chain plus assuming debt and leases.
Blockbuster and its lawyers could not immediately be reached for comment. The chain filed for Chapter 11 bankruptcy protection in September and said it would continue to operate its 3,300 stores.
Creditors including activist investor Carl Icahn and a group led by hedge fund Monarch Alternative Capital LP could vie to buy the chain out of bankruptcy, the Journal reported.
Once the dominant U.S. movie rental chain, the Dallas company lost money for years as Netflix Inc., video on demand and DVD rental kiosks stole business.
Published at 2:55 PM CST on Feb 10, 2011
Copyright Associated Press