Blockbuster Warns About Future of Company

Company files new warning about financial future.

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    NEWSLETTERS

    TK
    AP
    Dallas-based Blockbuster may have trouble staying in business.

    Dallas-based movie rental company Blockbuster says the risk it may not complete financing deals raises "substantial doubt" about its ability to continue as a going concern.

    Blockbuster Inc. disclosed the warning in a regulatory filing Monday.
     
    The company had already cautioned last month that its auditor was likely to raise doubts about its ability to stay in business.

    A going-concern qualification refers to an auditor's assessment of a company's ability to continue to operate for the foreseeable future.

    "While we believe that...we will be in a position to close on the amended credit facility on or about May 11, 2009, there can be no assurance regarding these matters," the filing said. "The risk that we may not successfully complete this refinancing...raises substantial doubt about our ability to continue as a going concern."

     

    Blockbuster reiterated on Monday its fiscal year 2009 forecast for lower worldwide same-store revenues compared with the fourth quarter of 2008.

    Shares of Blockbuster closed up 1.2 percent, or 1 cent, at 88 cents per share on Monday on the New York Stock Exchange.