Blockbuster Stays Afloat For Now
New deal for Dallas chain
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.
Published at 4:56 PM CDT on Mar 19, 2009
Copyright Associated Press / NBC 5 Dallas-Fort Worth