Blockbuster Stays Afloat For Now

New deal for Dallas chain

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    NEWSLETTERS

    AP
    Revenue at Dallas-based Blockbuster fell 12 percent.

    Blockbuster lined up new financing to give the struggling video rental chain more breathing room as it tries to adapt to ever-fiercer competition from the Internet and cable services.

    The Dallas-based company announced the refinancing Thursday along with its fourth-quarter results.
     
    Blockbuster said it lost $360 million, or $1.89 per share, in the three-month period ending Jan. 4, primarily because of charges to account for the diminishing value of its 7,500-store franchise.
     
    Revenue fell 12 percent to $1.38 billion.

    Despite the tentative refinancing agreement, Blockbuster said it expects its auditor to issue a warning about the company's ability to remain afloat.